Binance Officially Launches Institutional Loans, Key Information Revealed by Richard Teng
Binance, the global cryptocurrency exchange, has announced a new offering for verified institutional clients and high-volume corporate users – Binance Institutional Loans. The service, which was revealed by Binance CEO Richard Teng in a tweet, aims to revolutionise how institutions access liquidity across their entire portfolio.
The loans offer large credit lines, ranging from 1 million to 10 million USDT or USDC, with up to 4x leverage. Eligibility criteria are stringent, requiring clients to be verified corporate users through Binance's Know-Your-Business (KYB) process, have VIP 5 trading status, or obtain manual approval by Binance's Margin Team. Approval may also depend on regional regulations.
Loans are cross-collateralized using the combined net equity from up to ten linked sub-accounts. Over 400 crypto assets can be used as collateral, including major cryptocurrencies like BTC, ETH, BNB, SOL, and stablecoins such as USDT and USDC. Notably, popular coins like BTC and ETH do not incur haircut values, enhancing borrowing power.
Clients select which sub-accounts to pledge as collateral, and Loan-to-Value (LTV) ratios are monitored carefully. Margin calls trigger at 85% LTV, and liquidation occurs at 90% LTV if additional collateral is not added.
Under certain high-volume trading conditions, clients may qualify for 0% interest loans, significantly reducing borrowing costs. Borrowed funds are credited in real-time to a dedicated sub-account and can be instantly used across Binance’s Margin and Futures platforms, supporting fast and flexible trading strategies, including high-frequency trading.
This loan product enhances capital efficiency by letting institutions access liquidity without consolidating funds across accounts. The service is tailored to support swift trading decisions, ideal for short-term arbitrage and other strategies requiring quick access to leveraged capital.
The new appointment of Gillian Lynch as the head of Europe and the U.K. at Binance further underscores the company's commitment to compliance, transparency, and user protection in these regions. Lynch, a former executive at the Central Bank of Ireland and Gemini, brings a wealth of fintech and banking leadership experience to her new role, where she will oversee strategy, daily operations, and regulatory engagement.
This move is part of Binance's focus on regulation, protection of users, and sustainable expansion in Europe and the U.K. The appointment of Lynch does not affect the existing Binance Institutional Loans offering, which is available to volume VIP 5+ corporate users (KYB), or upon request of companies seeking capital assistance to rapidly scale their volumes.
This latest announcement and appointment are the latest in a series of moves by Binance to strengthen its regulatory presence and user protection measures in key markets. Binance Institutional Loans reimagines how institutions access liquidity across their entire portfolio, offering a unique solution for high-volume traders and institutional clients in the cryptocurrency space.
- Binance Institutional Loans, a new service for verified institutional clients and high-volume corporate users, aims to revolutionize how institutions access liquidity across their entire portfolio, using significant credit lines of up to 10 million USDT or USDC with up to 4x leverage.
- Eligibility for Binance Institutional Loans includes corporate users verified through Binance's Know-Your-Business (KYB) process, VIP 5 trading status, and manual approval by Binance's Margin Team, with consideration given to regional regulations.
- Over 400 crypto assets, including major cryptocurrencies such as BTC, ETH, BNB, SOL, stablecoins like USDT and USDC, can be used as collateral for Binance Institutional Loans, with popular coins like BTC and ETH not incurring haircut values that reduce borrowing power.
- Clients can select which sub-accounts to pledge as collateral, and Loan-to-Value (LTV) ratios are monitored closely, with margin calls triggering at 85% LTV and liquidation occurring at 90% LTV if additional collateral is not added.
- Under high-volume trading conditions, clients may qualify for 0% interest loans, significantly reducing borrowing costs, and borrowed funds are credited in real-time to a dedicated sub-account for instant use across Binance’s Margin and Futures platforms, supporting fast and flexible trading strategies.
