Binance unveils Lite Loan: borrow USDT against BTC

Binance launches Lite Loan, letting users borrow up to 1,000 USDT against BTC for 30 days with no liquidation risk. Collateral earns yield, and a 0.5% promo fee applies until September 3.

Binance has introduced Lite Loan, a new bitcoin-backed lending product for eligible users. This service allows users to borrow up to 1,000 USDT without selling their BTC, catering to small, short-term liquidity needs. The process is streamlined compared to traditional crypto lending, offering a user-friendly experience. Users can pledge BTC, including assets in Simple Earn Flexible products, as collateral and continue earning yield throughout the loan term. The initial loan period is 30 days, with no price-triggered liquidation risk and no need to monitor the loan-to-value ratio. If not repaid on time, the loan can be extended for another 30 days. The product features a 36% annualized interest rate, an 85% margin call, and a 91% liquidation threshold. A promotional 0.5% service fee applies until September 3, after which it rises to 1%. Only master accounts are eligible, and repayment can be made in the borrowed asset or other supported cryptocurrencies. Borrowed USDT can be used for trading or payments via Binance Pay.