The new lending project will provide crypto miners with access to a $500 million loan fund
According to the official blog post from Oct. 14, the Binance Pool, a mining subsidiary of Binance, launched a $500 million lending project to support the crypto mining industry. It will provide access to a $500 million loan fund on certain conditions.
Namely, the loans will be provided to private “blue-chip” Bitcoin miners who could back their bids with physical or digital assets. The loans will be given for 18-to-24-month term. They’ll incur 5% to 10% interest rates, and use physical or digital assets as a security.
Binance will take into account a wide range of metrics, including current performance, mining power and security quantity, to define the borrower’s creditworthiness.
In addition, Binance Pool will launch cloud mining products. The fund will directly purchase the cloud mining hash power from Bitcoin mining and digital infrastructure providers.
The company has not yet specified the maximum amount of a single loan. It will be defined individually based on each applicant’s specific situation.