- Binance now allows Bored Ape Yacht Club (BAYC) holders to borrow money using their NFTs as collateral.
- Other accepted collaterals are popular Ethereum-based NFTs.
- Earlier this month, Binance also added support for Bitcoin-based NFTs called Ordinals.
Binance’s NFT marketplace has introduced a new feature that allows users to borrow cryptocurrencies using NFTs as collateral. This move marks Binance’s entrance into the NFT lending space.
Currently, the Binance NFT marketplace supports borrowing ether (ETH) against “blue-chip” NFTs like Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles.
According to the announcement, the interest rate on NFT loans is 7.91% per annum, and the loan-to-value ratio ranges from 40% to 60%. Notably, there won’t be any gas fees or Ethereum transaction fees charged.
Binance launched its NFT marketplace in April 2021 and added support for Bitcoin-based NFTs, also known as Ordinals, earlier this month. The marketplace already supports blockchains such as Ethereum, Polygon, and Binance’s native BNB Chain.
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This introduction of the NFT loan feature by Binance comes shortly after another prominent NFT marketplace, Blur, launched its own NFT lending protocol called Blend. Blend allows lenders to set their own interest rates and loan-to-value ratios, offering a market-driven approach to revolutionize the lending landscape in the NFT market.
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