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Binance Enhances Crypto Loan Services with Four New Altcoin Collateral Options

Binance Enhances Crypto Loan Services with Four New Altcoin Collateral Options

Published:
2025-08-01 12:36:17
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Binance has expanded its loan services by introducing four new altcoins—Treehouse (TREE), Arena-Z (A2Z), KernelDAO (KERNEL), and Spark (SPK)—as eligible collateral. This update applies to both Flexible Rate Loans for retail users and VIP Loans for institutional clients, underscoring Binance's dedication to providing versatile liquidity solutions in the cryptocurrency market. The inclusion of KERNEL and SPK in Flexible Rate Loans offers borrowers greater flexibility, while the broader collateral options cater to diverse trading and investment strategies. This move aligns with Binance's ongoing efforts to innovate and adapt to the evolving needs of its global user base, further solidifying its position as a leader in crypto financial services.

Binance Expands Loan Services with New Altcoin Collateral Options

Binance has significantly broadened its loan offerings by adding four altcoins—Treehouse (TREE), Arena-Z (A2Z), KernelDAO (KERNEL), and Spark (SPK)—as eligible collateral. The expansion covers both its Flexible Rate Loans for retail users and VIP Loans for institutional clients, reinforcing the exchange's commitment to flexible liquidity solutions.

The Flexible Rate Loans now accept KERNEL and SPK, allowing borrowers to retain yield-generating positions in Simple Earn Flexible Products while accessing liquidity. Interest rates adjust minute-by-minute, with no fixed repayment timeline—a strategic MOVE for investors seeking dynamic exposure without asset liquidation.

For high-net-worth traders, TREE and A2Z join Binance's VIP Loan platform. The additions signal growing institutional demand for altcoin-backed financing amid evolving market conditions. Binance's collateral diversification strategy mirrors broader industry trends toward sophisticated crypto-native financial products.

How Token Burn and Buyback Models Sustain Long-Term Crypto Value

Token burning—the deliberate removal of coins from circulation—has emerged as a cornerstone strategy for crypto projects aiming to enhance scarcity and value. By sending tokens to irretrievable addresses, protocols like Binance Coin (BNB) and Ethereum (ETH) create verifiable deflationary pressure. Binance ties its burns to trading revenue, while Ethereum’s EIP-1559 upgrade automates fee burns based on network activity.

MultiBank Group’s $MBG token adopts a similar approach, committing to destroy $440 million worth of tokens over four years. The first year targets 10.5% of the supply, scaling to 25.5% by year four. Funding comes from trading fees across MultiBank’s ecosystem, including derivatives, tokenized real estate, and exchange services.

Ethereum Takes the Lead in Capital Rotation as Institutional Interest Grows

Ethereum has emerged as the focal point of capital rotation in cryptocurrency markets, outpacing Bitcoin in institutional inflows and trading momentum. The shift marks a structural realignment, with ETH's dominance climbing to 11.85% as BTC's share fell to 61.8% in July.

The ETH/BTC ratio surged 28% across exchanges including Binance, signaling a broader altcoin season. Institutional players are driving this trend—CoinShares data shows $1.594 billion flowed into ethereum products recently, reflecting long-term confidence in its fundamentals rather than speculative trading alone.

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