The new service, called Binance NFT Loan, "will allow people to use blue-chip NFTs to borrow crypto, starting with ETH, introducing the benefits of DeFi to the Binance NFT community," Binance said in a press release.
According to the platform, the tool offers competitive interest rates, instant liquidity, zero gas fees and liquidity protection. It uses a "Peer-to-Pool" approach where Binance acts as the pool for loans.
The feature, launching on Friday, will initially support Ethereum loans only and NFTs from Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki and Doodles collections. The platform plans to roll out new options in the future.
Mayur Kamat, head of product at Binance, said in a press release that the new feature will provide new liquidity options for holders, "allowing them to participate in the market without having to let go of their precious NFTs.”
"We’ve added a host of features that make it a one-stop shop for NFT trading and financial services for our community," said Kamat.
Binance has recently been expanding its NFT offerings to stay competitive, embracing trends seen across the crypto space. In March, the platform launched a beta for “Bicasso,” an artificial intelligence (AI)-powered NFT generator. And in May, it announced that it would soon add support for Bitcoin NFTs.