Binance to launch NFT loan feature

Binance, a digital asset marketplace, is introducing a new feature where holders of non-fungible tokens (NFTs) can use them as collateral to secure Ethereum loans. The feature, called Binance NFT Loan, will be launched on Friday and will initially support loans using NFTs from collections such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles. Binance plans to add more options in the future. According to the platform, the feature offers competitive interest rates, instant liquidity, zero gas fees, and liquidity protection. Binance acts as the pool for loans using a “Peer-to-Pool” approach. The new feature will provide liquidity options for NFT holders, allowing them to participate in the market while retaining their NFTs. Binance has been expanding its NFT offerings, launching a beta for “Bicasso,” an artificial intelligence-powered NFT generator in March and announcing support for Bitcoin NFTs in May. Edited by Toby Leah Bochan.