Binance Pool, a mining subsidiary of Binance, unveiled a $500 million lending project for providing support to the cryptocurrency industry, which is expected to give loans to private blue-chip Bitcoin cryptocurrency miners, as reported by Cointelegraph.
According to Cointelegraph, through an October blog post, the Binance pool will give access to a $500 million loan fund on account of certain conditions such as an 18-to-24-month term, five percent to 10% interest rates, and certain physical or digital assets as a security. The company is expected to go through certain factors such as current performance, mining power and secure quantity, to define the borrower’s creditworthiness.
On the basis of information by Cointelegraph, Binance pool will launch cloud mining products, directly resulting in the purchase of cloud mining hash power from Bitcoin mining and digital infrastructure providers. The company did not provide any specifications around the maximum amount of a single loan, with reference to the specifics of each applicant’s situation.
“One of the requirements is that the applicant must be classified as a Binance VIP user and connect at least 500 PH/s to the Binance Pool for a minimum of 24 months after the loan is issued,” a Binance spokesperson said.
Moreover, Cointelegraph noted that Binance proceeds with its expansion strategy even in the bear market. In September, the company got itself registered with New Zealand’s Ministry of Business, Innovation and Employment and started local offices in the country. At the beginning of October, the exchange unveiled two offices two offices in Brazil, doubling the size of its local team since Changpeng “CZ” Zhao’s visit to the country last spring. Reportedly, the company still backs Elon Musk, CEO, Tesla’s $44 billion takeover bid of social media platform Twitter.
(With insights from Cointelegraph)
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