Binance Pool, a mining subsidiary of Binance, has established a loan scheme with a total funding capacity of $500 million to assist the cryptocurrency mining business. This organization will offer loans to private blue-chip Bitcoin crypto miners.
According to the post on the official blog that was published on October 14, the Binance Pool will grant access to a loan fund with a total value of $500 million on the condition that borrowers meet a number of requirements. These requirements include an 18-to-24-month repayment term, interest rates ranging from 5% to 10%, and the provision of some physical or digital assets as a security. When determining the borrower’s creditworthiness, the corporation will take a broad variety of criteria into consideration, such as the borrower’s current performance, mining power, and security quantity.
Additionally, Binance Pool will introduce cloud mining goods, after which they will directly purchase the hashing power required for cloud mining from Bitcoin mining and digital infrastructure providers.
A spokesman for Binance defined the criteria for designating a prospective borrower as a “blue-chip”:
- has a Binance VIP user;
- connects at least 500 PH/s for a min of 24 months.
The organization did not indicate the maximum amount that may be borrowed for a single loan, instead referring to the individual circumstances of each applicant.
Even if the market is in a bearish state, Binance is continuing its plan of growth. It launched local offices around New Zealand in September, at the same time that it registered with the Ministry of Business, Innovation, and Employment in New Zealand.
Since Changpeng Zhao’s trip to Brazil in the spring of 2021, the local team has more than doubled in size thanks to the opening of two new offices in Brazil at the beginning of the month of October.