Binance Supercharges Crypto Loans: Now Accepting 10+ Altcoins as Collateral

Binance just flipped the script on crypto-backed loans—adding a fresh batch of altcoins to its collateral options. Traders can now leverage everything from meme coins to DeFi tokens without selling their bags. Here’s why it matters.

More coins, more problems (solved): The exchange’s move targets hodlers who refuse to cash out during volatile markets. Lock up your altcoins, borrow stablecoins, and dodge taxable events—while praying your collateral doesn’t tank 50% overnight.

The fine print: Loan-to-value ratios vary, but Binance isn’t disclosing haircuts for riskier assets. Smart money says: read the terms unless you enjoy margin calls.

Cynical take: Nothing says 'mature financial ecosystem' like borrowing against dog-themed tokens. Welcome to 2025’s version of subprime mortgages—now with extra volatility.

New Collaterals for Flexible Rate Loans

In the flexible rate loan service, KERNEL and SPK coins can now be used as collateral. Users will be able to request loans without locking their cryptocurrencies, which are already available in Simple Earn Flexible Products, while still receiving real-time annual yields. The system allows borrowing with updated interest rates every minute, with a minimum loan of one USDC.

The flexible rate loan model targets investors who do not wish to specify a repayment period. This approach enables instant liquidity based on market conditions without requiring the sale of held cryptocurrencies. Binance highlights that the inclusion of KERNEL and SPK coins will enhance users’ portfolio diversification while increasing collateral ratios.

New Altcoins for VIP Loan Users

For institutional and high-volume traders, the VIP Loan platform now includes TREE and A2Z coins in their list of cryptocurrencies available for loans. KERNEL and SPK will also be accepted as collateral in the VIP segment. This service, known for its large limits and customizable terms, adjusts interest rates according to customer profiles.

Binance’s VIP Loan model appeals to professionals looking to create additional capital for long-term investment funds, Leveraged trades, or hedging strategies. Its over-collateralization structure supports risk management against market fluctuations, while the platform’s flexibility in recalling loans simplifies operational planning. The addition of new altcoins has further expanded the range of asset diversification and collateral options available to VIP users.