Binance has added the two cryptocurrencies in order to expand its loan service to more users.
Binance, the world’s largest cryptocurrency exchange by trade volume, has announced that it has added Cardano (ADA) and Avalanche (AVAX) to its list of supported staking collateral assets on the Binance Loan platform.
The exchange noted in a blog post today that ADA and AVAX holders can now stake the cryptocurrencies in order to borrow other crypto assets on the platform.
With the addition of ADA and AVAX, Binance has increased the list of assets that users can drop as collateral, in a bid to allow more people to join the initiative.
“Binance has added ADA and AVAX as staking collateral assets on the Binance Loans platform. Loan orders with ADA and AVAX as collateral will be staked to reduce interest.”
Binance Loan Services
Launched in 2019, Binance Loans allows users to deposit supported cryptocurrencies as collateral in order to obtain a loan in another digital currency.
Aside from ensuring that the cryptocurrency you want to borrow and use as collateral is supported on the platform, there is no entry barrier for Binance users who want to participate in the exercise.
Some of the crypto assets users can borrow include Tether (USDT), Binance Dollar (BUSD), Fantom (FTM), USD Coin (USDC), etc.
Similarly, the world’s largest cryptocurrency exchange also supports a variety of assets users can deposit as collateral in order to borrow other digital currencies from the loan platform.
Users can choose the duration of the loan as they deem fit, which ranges from between seven to 180 days.