Binance is launching its new crypto lending platform (“Binance Lending”) on August 28.

Around 06:34 UTC on Monday (August 26), Changpeng Zhao (aka “CZ”), Co-Founder and CEO of Binance, gave us a hint that Binance was about to make an announcement related to either staking or lending:

Would you like to earn #crypto while you sleep? Keep an eye on @binance today. — CZ Binance (@cz_binance) August 26, 2019

Then, approximately, six hours later, Binance announced via Twitter that it is planning to launch a crypto lending platform that supports Tether (USDT), Binance Coin (BNB), and Ethereum Classic (ETC).

A support article on the Binance website provided more details about Binance’s upcoming Lending Platform.

Here is what we know so far:

The new platform will be launched at 06:00 UTC on August 29.

Binance users will be able to “grow their funds by earning interest income for lending out their holdings over a specific period of time.”

In phase one, there will be 14-day fixed term lending products for BNB, USDT, and ETC.

The annualized interest rates for BNB, USDT, and ETC will be 15%, 10%, and 7% respectively.

The subscription period starts at 06:00 UTC on August 28 and ends at 00:00 UTC on August 29; the format is “first-come-first-served”.

The interest calculation period is from 00:00 UTC on August 28 to 23:59 UTC on September 10.

Interest is paid out as soon as the loan’s maturity date is reached.

For instance, if a user subscribes to 100 lots of BNB Lending (ti.e. lending a total of 1000 BNB), he/she will earn 0.057534 BNB x 100 = 5.7534 BNB on the maturity date.

And for those people who wish to take part in Binance Launchpad’s lotteries, here is the good news:

Furthermore, the Binance Team pointed out that “BNB balances committed into Lending products will be included in each user’s daily BNB balance calculations for Binance Launchpad and other daily calculations.”

Yes! you can earn interest on $BNB (15% annualized) while participating in #Binance Launchpad 🚀 Win-Win! — Binance (@binance) August 26, 2019

CZ says you can think of this as “staking” for BNB:

I am glad you used the word “staking”. Yes, it is kinda like staking for BNB. Enjoy! 😁 https://t.co/HUnsjqm0to — CZ Binance (@cz_binance) August 26, 2019

CZ also explained where the crypto you lend out goes to and where the interest you receive comes from:

Lending on @binance goes to Margin borrowers, who pay the interests. Simple. Very different from other guaranteed-return schemes. We don't have to look for another place to invest. That's why Margin is out first. Spartans get it. https://t.co/y4Iy5iRRGC — CZ Binance (@cz_binance) August 26, 2019

This will also increase the availability of funds to lend to Margin traders, so expect the (previously low) margin limits to increase a bit. Again, @binance is just a matchmaker. — CZ Binance (@cz_binance) August 26, 2019

In a press release shared with CryptoGlobe, CZ had this to say about Binance Lending and its “guaranteed” interest rates:

Binance Lending is simple and intuitive to use. Users can subscribe to any lending product and earn interest, it’s as easy as that. The interest rate for each product is guaranteed, so your crypto balance will always grow, regardless of how the market moves.

The press release also mentioned that “Binance Lending will be constantly evaluating new coins and tokens to support as lending products based on demand and to deliver the best value to Binance Lending users.”

Lending table courtesy of Binance