Crypto exchange Binance has launched its NFT lending feature on its NFT marketplace.
Users can only borrow ETH at the moment against the leading NFTs like BAYC, MAYC and Azuki.
Binance’s NFT Lending Feature Is Now Live
The NFT marketplace of Binance has launched a new feature that allows users to borrow cryptocurrencies using NFTs as collateral. This latest development makes Binance the latest company to enter the NFT lending space.
However, at the moment. The Binance NFT marketplace only allows users to borrow ETH while using "blue-chip" NFTs, such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki and Doodles, as collateral.
The crypto exchange said the interest rate on NFT loans currently stands at 7.91% per annum, and the loan-to-value ratio ranges from 40% to 60%. Binance won’t charge gas fees or Ethereum transaction fees on the transactions.
The Binance NFT marketplace launched in June 2021 but is yet to gain as much popularity as Blur, OpenSea, Rarible and SuperRare.
Earlier this month, Binance NFT announced that it would add support for Ordinals, or Bitcoin NFTs. The NFT marketplace already supports NFTs on the Ethereum, Polygon, and BNBChain blockchains.
Binance’s NFT lending feature comes shortly after Blur introduced its NFT lending protocol called Blend earlier this month. With Blend, lenders can set their own interest rates and loan-to-value rations.