Binance NFT announces new NFT loan feature

on May 25, 2023
  • Binance NFT says the new feature allows customers to borrow cryptocurrencies like ETH with NFTs as collateral.
  • Users will also borrow against their NFTs at zero gas fees
  • Supported NFT collections include Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), and Doodles.

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Binance NFT, the official NFT marketplace of the world’s largest cryptocurrency exchange and blockchain infrastructure platform Binance, has launched a new feature that allows users to borrow cryptocurrencies against their NFTs as collateral.

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Users to borrow against their NFTs at zero gas fees

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According to details seen by Invezz, the new loans feature will offer competitive interest rates and be available with select high-profile NFT projects. Binance NFT will also allow customers to borrow at zero gas fees, with the target being to enable people to quickly borrow Ethereum (ETH) against their collections.

Users will access these without having to sell their NFTs, the details showed.

In a comment on the new feature, Binance NFT CEO Mayur Kamat said:

“Binance NFT is building! […] We’ve added a host of features that make it a one-stop shop for NFT trading and financial services for our community. We already have low fees and the Binance peace of mind, now NFT Loans will add a new form of liquidity for NFT holders, allowing them to participate in the market without having to let go of their precious NFTs.”

Apart from ETH, Binance will also offer loans against top NFT collections including Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles.

In terms of how much ETH one can borrow, Binance said it will depend on the given NFT collection’s floor price. This will be calculated on the basis of Binance’s Oracle Pricing, which is an aggregation of prices from across leading NFT price sources, including Chainlink and OpenSea.

Binance Chainlink Ethereum Crypto NFT