As part of its entry into the NFT lending industry, Binance‘s NFT marketplace has added a new function that allows users to borrow cryptocurrencies using NFTs as collateral.
A New Function for Binance NFT Marketplace
The Binance NFT marketplace currently supports Ether (ETH) borrowing against “blue-chip” NFTs, such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki and Doodles, according to an announcement Thursday.
About NFT Marketplace
In April 2021, Binance introduced the NFT marketplace, which it officially launched in June of the same year. Moreover, in addition to the existing Ethereum, Polygon, and its own BNB Chain, Binance NFT said earlier this month that it will add support for Ordinals or Bitcoin NFTs.
The Binance NFT Loan Feature and Blend
Shortly after NFT marketplace giant Blur released its NFT lending protocol called Blend earlier this month, Binance introduced its own NFT loan service. According to a recent analysis by Block Research analyst Brad Kay, Blend gives lenders the freedom to choose their own interest rates and loan-to-value percentages.