Binance Pool, the crypto exchange’s mining subsidiary, launched a US$500mln lending project to help bail-out struggling 'blue-chip' bitcoin miners.
Loans will be granted from the US$500mln fund depending on several conditions including an 18-to-24-month term, 5% to 10% interest rates and some form of physical or digital assets as security.
Binance Pool will examine a variety of metrics such as current performance, mining power and security quantity to establish the borrower’s creditworthiness.
“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,” one Binance spokesperson said when discussing the criteria for defining a borrower as ‘blue-chip.’
Binance Pool will reportedly also unveil cloud mining products, directly buying the hashing power from bitcoin mining and digital infrastructure providers, Coin Telegraph said.
The cryptocurrency exchange has continued an expansion strategy despite the ongoing bear market.
Last month, it registered with New Zealand’s Ministry of Business, Innovation and Employment, while it also opened local offices in the country.
In October, Binance opened two offices in Brazil, doubling the size of its local team.