Binance launches $500 million loan project to support crypto miners

Loans will be made to "blue chip" bitcoin miners who could back their offerings with physical or digital assets.

Binance Pool, a mining subsidiary of Binance, has launched a $500 million loan project to support the crypto mining industry. It will provide loans to top-notch Bitcoin (BTC) private crypto miners.

According to the official blog on October 14, the Binance Pool will provide access to a $500 million loan fund under several conditions, including a term of 18 to 24 months, interest rates of 5% to 10% , and certain physical or digital assets as security. The company will look at a wide range of metrics, including current performance, mining power, and amount of security, to define borrower creditworthiness.

Binance Pool will also launch cloud mining products, purchasing cloud mining hashing power directly from digital infrastructure and Bitcoin mining providers.

Speaking to Cointelegraph, a Binance spokesperson clarified the criteria for defining a potential borrower as a "blue-chip:"

"One of the requirements is that the applicant must be classified as a Binance VIP user and connect at least 500 PH/s to the Binance pool for at least 24 months after the loan is granted."

The company did not specify the maximum amount of a single loan, referring to the specifics of each applicant's situation.

Related: Binance Burns $1.8M in LUNC Trading Fees Following Community Proposal

Binance continues its expansion strategy even in the bear market. In September, it registered with the New Zealand Department of Business, Innovation and Employment and