Binance, the popular international cryptocurrency exchange with users from over 180 countries, has announced that its users who hold three additional top cryptos including Bitcoin cash will be eligible for interest bearing service. Binance Lending has now added ETH, BCH, and EOS to the list of flexible deposit supported digital assets. These only join the BTC, BNB and two previously available stablecoins.
Lending is a financial product that the exchange offers its users to lend to Binance Margin their idle crypto assets on the platform, and to earn interest in it. Flexible deposits are like a crypto savings account, with the flexibility of redeeming funds without a long-term commitment and the simplicity of getting daily interest while margin traders use your money.
Binance Lending has set the individual maximum limit for Bitcoin cash at 1,000,000 BCH but the company says it will adjust interest rates and maximum individual limits on flexible deposits based on market and risk factors. The risks of holding any large amount on an exchange should also be considered from the point of view of the users who can afford to lend such a sum.
Binance is always pretty quick to add Bitcoin cash support to new services that it launches after an initial phase of testing. It launched BCH trading on the decentralized exchange developed on top of Binance Chain in October 2019, obtained by listing a token on the DEX that is backed by real Bitcoin cash assets.
Crypto Lending Activity Heating Up
The lending and borrowing business of cryptocurrencies, previously the domain of specialized ventures, has attracted much attention from new companies such as retail exchanges and wallets.
Cryptolydian reported earlier this March that Blockchain.com, a popular cryptocurrency wallet service and blockchain data provider, will now allow users to borrow against their holdings.
The firm announced its new “Borrow” service, saying it will be offering loans in US dollar-denominated stablecoins against Bitcoin (BTC) holdings held in the Blockchain Wallet. Loans are available worldwide open to wallet holders immediately after collateral has been made available, the firm said.