Binance Wallet Teams with Venus Protocol to Launch DeFi Loans—Here’s What It Means for Your Crypto

Binance just dropped a bombshell for DeFi users. Its wallet division is rolling out native lending services through a strategic partnership with Venus Protocol, one of the largest money markets on the BNB Chain.

Seamless Lending, Directly in Your Wallet

Forget bridging assets to third-party dApps. This integration lets users collateralize major cryptocurrencies like BNB and stablecoins directly within the Binance Wallet interface to borrow against them. It cuts out the middleman, slashes steps, and aims to pull liquidity deeper into the BNB ecosystem.

A Power Play for Ecosystem Dominance

This isn't just a feature add—it's a strategic land grab. By embedding Venus's lending pools, Binance Wallet morphs from a simple storage tool into a full-service DeFi hub. It keeps users—and their assets—locked within the Binance universe, challenging standalone wallets and protocols. Think of it as a vertical integration play that traditional finance giants would envy, if they understood it.

The Fine Print and the Frontier

As with any DeFi product, over-collateralization is the name of the game. Users need to watch those loan-to-value ratios like hawks to avoid liquidation. The move signals Binance's bet that convenience will trump pure yield for a massive segment of users tired of navigating DeFi's fragmented landscape.

One tap to borrow against your crypto, no finance degree required—though a high risk tolerance is still non-negotiable. It makes the old bank loan process look positively archaic, even if the underlying risk of getting liquidated in a volatile market is the crypto equivalent of a margin call on steroids.

Binance Wallet launches DeFi loans with Venus Protocol

Binance just announced that users of its self-custody wallet can now access DeFi loans. The exchange partnered with Venus Protocol, the largest DeFi lending platform on the Binance Smart Chain (BNB), boasting over $22 billion in liquidity. 

Users can now borrow by using assets like ethereum and Bitcoin as collateral. There is also a 400,000 USDT reward pool to be shared among eligible borrowers.

Users can access the Web3 Loans facility through the Web3 Earn page in Binance Wallet, where they deposit collateral. The loan is set up in a way that keeps assets under user control, while unlocking liquidity for trading or yield farming, eliminating the need to sell assets, which could trigger taxes in places like the U.S.

Binance serves more than 240 million users globally, giving it a potential distribution advantage as it targets a market that has grown to over $54 billion in total value locked across DeFi lending platforms as of mid-2025. 

DeFi lending protocols lock a combined $63.3 billion value after peaking earlier in the year. Source: Defillama

Binance’s move exploits its low transaction fees and faster speed to draw users away from the Ethereum ecosystem. BNB’s DeFi ecosystem currently boasts over $17 billion in total value locked.

Can Binance challenge Ethereum DeFi lending? 

Ethereum currently holds the majority of the DeFi lending market, holding almost 80% of the market share. The major DeFi lending platforms on Ethereum, Aave, MakerDAO, and Compound, hold about 72% of the market share. 

Aave increased its TVL by 52% in Q2 2025, outpacing broader DeFi growth of 26%. The protocol has expanded across 14 blockchain networks and handles billions in flash loans and cross-chain transactions monthly. 

Binance is leveraging cheaper transaction fees and an overall better user experience to compete. Platforms built on other chains like Solana, which holds 5.1% of DeFi deposits, have demonstrated that users will migrate for lower costs and better performance. 

Market data also suggests there’s room for competition despite Ethereum’s lead. DeFi lending is experiencing rapid growth, with over 7.8 million users. The market has also surged by about 38% from $19.1 billion in 2024 to over $26 billion by mid-2025.

The partnership with Venus Protocol gives Binance immediate access to established DeFi infrastructure rather than building from scratch. 

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