Binance Launches $500 Million Loan Fund to Support Crypto Mining

Binance launched an initiative for crypto miners worth IDR 7.7 trillion. (Photo; Doc. BCTD)

JAKARTA – The world's largest crypto exchange by trading volume, Binance, announced its support for crypto mining activities. With this in mind, Binance launched a USD 500 million (approximately IDR 7.7 trillion) lending program, the funds generated from Binance's own mining pool.

The initiative is aimed at helping crypto miners in the times of the crypto winter that has hit the industry in recent months. In addition, the crypto exchange platform also launched the Binance Pool which is intended as a cloud-based mining product.

Binance, the world's leading crypto exchange by daily trading volume, has announced plans to expand financial support to companies involved in cryptocurrency extraction. The lending project was recently launched by the platform mining pool.

The program will assist bitcoin mining and infrastructure providers as part of efforts to improve the mining industry. "As one of the world's leading crypto mining pools, Binance Pool has a responsibility to help maintain a healthy digital asset ecosystem," the exchange said.

“Given the current market conditions, Binance Pool is launching a USD 500 million loan project to support crypto miners and digital infrastructure providers,” reads an announcement from Binance, quoted from Bitcoin.com News.

With this Binance Pool project, the global crypto company aims to offer secure debt financing services to public and private blue-chip bitcoin (BTC) mining companies and digital asset infrastructure worldwide.

To gain access to a loan, the borrower must accept a series of terms and conditions such as a term of 18 to 24 months and interest rates ranging between 5 percent and 10 percent. Miners will also be required to provide security that meets Binance's criteria, both physically and in the form of digital assets.

In the announcement, the crypto exchange revealed that Binance Pool intends to launch a cloud mining product. Since cloud mining hash-rates will be directly purchased from bitcoin mining and digital infrastructure providers, Binance Pool is looking for cloud mining vendors to work with, explained Changpeng Zhao's trading platform.

For your information, Binance Pool is one of the leading entities in the mining sector by hash-rate share, along with Foundry USA, Antpool, F2pool, and Viabtc. After the drop on September 27, the first in two months in a row, Bitcoin mining difficulty spiked to an all-time high on October 10, as Bitcoin.com News reports, making mining harder than ever to mint the world's number one coin. , Bitcoins.