Binance has begun offering loans on the Ethereum network

Binance, a cryptocurrency exchange, now provides a lending service for NFTs. “Blue-chip” NFTs like BAYC, MAYC, and Azuki are now supported for ETH borrowing using this capability.

By allowing users to borrow cryptocurrencies against their NFT holdings, Binance has officially entered the NFT lending business.

The Binance NFT website reports that the current interest rate on NFT loans is 7.91% per year, with a loan-to-value ratio of anything between 40% and 60%. There will be no cost for using Ethereum or paying a gas price.

Binance’s NFT exchange was announced in April 2021 and was life in June of that year. Binance NFT announced earlier this month that it would begin supporting Ordinals, or Bitcoin NFTs, in addition to Ethereum, Polygon, and its own BNB Chain.

The Binance NFT loan service was introduced this month, not long after the NFT marketplace Blur released its NFT lending protocol named Blend.

It’s impossible to deny Blend’s spectacular ascent in the NFT industry. According to Kay, “the protocol is demonstrating that a market-driven approach can successfully revolutionise the lending landscape as it continues to forge new ground in the industry.”

Also Read: The EU’s Banking Watchdog Has Issued A Warning That Crypto “May Threaten Financial Stability”