Binance adds Bitcoin Cash to its lending service’s flexible deposits
- Binance's new lending service just listed its seventh asset — Bitcoin Cash (BCH).
- Now, users who own BCH on the exchange's platform could choose to lend it to borrowers and earn interest along the way.
- Crypto lending is becoming the first major trend of 2020, and many companies, wallets, and platforms are joining in, which makes it unsurprising that Binance did the same.
Binance has just added support for Bitcoin Cash flexible deposits on its lending platform, Binance Lending. This means that BCH users will now have yet another way to earn interest on their digital asset holdings. BCH is now listed alongside EOS and Ethereum, and the move itself comes as the crypto lending sector begins to grow.
The list that now has the mentioned three coins originally started with only Bitcoin, Binance Coin, and two stablecoins. The new additions brought the number of offered cryptos up to seven at this time.
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Binance Lending itself is the popular exchange’s financial product that Binance provides to its users for lending the idle digital coins and earn interest for doing so. One of its functions, flexible deposits, acts as savings accounts for digital currency, and it features unique flexibility that allows users to redeem their money with no long-term commitment.
Meanwhile, they are also earning a daily interest, as margin traders use their funds. The current maximum limit for BCH sits at 1 million coins, although the company stated that it plans to adjust interest rates and maximum limit on flexible deposits according to the risk and market factors.
The risks should also be considered from the standpoint of the users that can afford to hold large amounts of BCH on the exchange’s platform.
Crypto lending is exploding across the industry
The addition of BCH should not come as a major surprise, as Binance was always quick to add support for the coin to any new service as soon as the testing phase is completed. The same happened when the exchange launched its DEX last year, as well as when it launched BCH/USDT futures contracts on Binance Futures.
With crypto lending and borrowing becoming a new big hit in the crypto industry, it was only a matter of time before Binance would launch its own lending service and add BCH to it, especially since many other wallets and retail exchanges are doing the same. One example is Blockchain.com, which launched its product Borrow on March 10th, offering USD-pegged stablecoins. The service became available in over 180 countries.
Before that, on March 5th, a custodian Bitgo announced its own lending service that has already been in beta for several months. Babel Finance, a Chinese crypto lending firm, also provided its view on the market in 2020, noting that the lending market is getting crowded.