Binance NFT marketplace has taken a step forward with the launch of its latest service. Dubbed Binance NFT Loan, a brand new product will let users take crypto loans using their digital collectibles as collateral.
Binance NFT loans currently support only ETH loans and are limited to four major NFT collections within the Ethereum ecosystem, namely Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles. Binance NFT platform believes that this move will introduce great benefits of DeFi to its robust NFT community members.
For the new feature, it is open-term and peer-to-pool, offering Loan-to-Value (LTV) ratios for each NFT collateral-loan pair position. Binance also voiced the benefits of the loaning process including competitive interest rates, liquidation protection, and zero gas fees, just to name a few.
Hinting at the benefit of the NFT loan service, Mayur Kamat, the head of product at Binance, stated:
“The new feature will allow users] to participate in the market without having to let go of their precious NFTs. We’ve added a host of features that make it a one-stop for NFT trading and financial services for our community.”
Lately, Binance has been making significant moves to expand its influence in the non-fungible realm. Earlier this month, the leading crypto exchange revealed its plans to join a cohort of blockchain-based projects that embrace the Bitcoin Ordinals for its NFT business.
With NFT lending services gaining traction in the realm, Binance’s latest move demonstrates its unswerving commitment to staying up-to-date by keeping up with rising trends in the realm. Stay tuned for more thrilling news from the company!