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Binance to Launch Margin Lending Services, Acting Purely as Matchmaker

Binance will be offering to lend for BNB and USDT, which makes the most sense since margin borrowers would prefer to borrow an asset that can be easily exchanged for whatever they want to buy. BNB and USDT have the most number of tradable pairs, making them a perfect match for margin lending.

BNB will be offered at a 15 percent annual return while USDT can be lent at 10 percent annually. Considering the fact that the one year United States Treasury yield is a mere 1.77 percent at the time of writing, this is a huge premium for those are willing to bet that Tether will maintain its peg and continue to gain market confidence.

Binance has guaranteed an interest payment no matter what happens to the market, which may not be the best idea from a financial company that doesn’t have the backing of statutory authority or investor protection rules. It is unknown how Binance will deal with the issue in the event of a default or inability to pay interest due.


Cryptocurrency enthusiasts have had mixed reactions (as always) to Binance’s announcement, but it seems like most people are not too happy with Binance.

Bitcoin Cash developer Amaury Séchet a.k.a deadalnix, was critical of the launch of a centralized lending service, comparing the current ecosystem revolving around lending services to the global economy before the 2008 recession.


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