Have BTC but don't want to sell, yet need USDT? Binance's crypto loans let you collateralize one cryptocurrency to borrow another — getting liquidity without selling your holdings.
What Are Crypto Loans?
Crypto Loans work like a mortgage:
- You put up one cryptocurrency as collateral
- Binance lends you another cryptocurrency
- You repay the loan + interest at maturity
- You get your collateral back
Your BTC (collateral) remains yours throughout — fully returned after repayment.
Does It Support Cross-Currency Collateral?
Yes. This is the core feature — use Currency A as collateral to borrow Currency B.
After signing up for Binance, common combinations include: BTC collateral to borrow USDT, ETH collateral to borrow USDT, BNB collateral to borrow USDT, BTC collateral to borrow ETH, and more.
What Is LTV (Loan-to-Value)?
- Initial LTV: Usually 65%-80%. Collateral worth 10,000 USDT → borrow 6,500-8,000 USDT
- Margin Call LTV: ~75%-85%. Add collateral when LTV reaches this level
- Liquidation LTV: ~83%-95%. System force-sells collateral to repay loan
How to Use?
- Binance App → Earn → Crypto Loans
- Select collateral currency (e.g., BTC)
- Select borrow currency (e.g., USDT)
- Enter borrow amount or collateral quantity
- Review rate, term, and LTV
- Confirm → Collateral locked, borrowed funds credited
Repayment Options
- Early repayment: Anytime, pay interest only for actual days used
- At maturity: Repay principal + interest on the due date
- Auto-renew: Some loans support automatic extension
Best Use Cases
- Bullish on BTC but need cash: Collateralize BTC, borrow USDT, reclaim BTC after it appreciates
- Short-term cash flow: Temporary need without liquidating positions
- Leverage: Collateralize BTC → borrow USDT → buy more BTC (risky!)
- New opportunities: Access USDT for new investments without selling long-term holdings
Risks
- Collateral price drop: BTC crash raises LTV, potentially triggering liquidation
- Interest costs: Real costs — calculate if long-term borrowing is worthwhile
- Locked collateral: Can't trade collateral during the loan
- Liquidation losses: May sell collateral at unfavorable prices
Interest rates fluctuate based on supply and demand. Stablecoin borrowing rates typically range from 5%-15% APY.
If you don't have the app, download the Binance App first.
Summary
Binance crypto loans fully support cross-currency collateral. The key is monitoring the LTV ratio to maintain sufficient safety margin. Ideal for those bullish on a coin but temporarily needing liquidity. Be mindful of liquidation risk and interest costs.