- Binance recently announced the addition of new coins that can serve as collateral for its lending service.
- The exchange’s loan service remains relatively new, but it continues to grow in popularity.
- The new coins include BCH, XRP, and LTC, which have now joined the likes of BTC, ETH, USDT, and BUSD.
Binance continues to work on the expansion of its ecosystem. To further its goals, the exchange added its Binance Loans service some time ago. Now, it is expanding the list of supported cryptocurrencies that can serve as collateral.
Three new cryptos accepted as collateral
According to its new announcement, Binance will now allow users to deposit three new altcoins as collateral for their loans. The altcoins in question include XRP, Bitcoin Cash, and Litecoin.
Binance’s new move comes at a curious time, just as crypto borrowing surges in popularity. The exchange’s goal is rather clear — it wishes to dominate this aspect of the crypto industry, as well.
The Binance Loans service originally saw launch less than a year ago, in August 2019. At the time, crypto borrowing just started to become a popular way for coin holders to use their dormant assets. Meanwhile, those who offered their coins for loans would earn through interest rates.
Any verified user of the exchange can borrow funds on its loans service, and cover it with a selection of assets. This included major cryptocurrencies like Bitcoin and Ethereum, as well as stablecoins like Tether and BUSD. Now, Binance listed three new tokens that can serve the same purpose.
Binance’s ecosystem continues to grow
The exchange’s announcement further stated that its aim is to maintain its flexibility. This is another aspect of the exchange the users have grown accustomed to. “Binance Loans will continue to be flexible and actively provide a varying range of options for supported crypto assets, interest rates, collateral assets, and maximum loanable limits based on market conditions and our internal risk management.”
Binance indeed offers quite a flexible service, with loan terms ranging anywhere from 7 days to as long as 90 days. Borrowers can even receive an overdue duration of an extra three days. During this period, they will receive a charge that is three times the size of regular interest.
However, if they fail to repay the loan even after this period will lose their collateral. The loan service further diversifies Binance’s already feature-rich ecosystem. Not only tha, but it continues to attract new users. Apart from lending, Binance also rolled out margin trading, and it plans to introduce futures trading. Binance even supports staking, even though it is still rather new and underdeveloped on an industry-level.