Binance will enter the NFT lending market with the launch of a new feature that allows users to secure an ETH loan using their NFTs as collateral.

Crypto exchange Binance plans to release its NFT Loan feature at 7:00 am ET on Friday.

The new feature will facilitate  ETH loans at launch, supporting high value NFT collections like Bored Ape Yacht Club (BAYC), Azuki, Mutant Ape Yacht Club (MAYC), and Doodles.  

According to the announcement, users will be offered a 70% discount on borrowing rates during the initial promotion period. This will bring down the standard borrowing interest rates of 11.2% per annum down to 3.36% per annum.

The platform will also facilitate instant liquidity, zero gas fees and liquidity protection. Binance will act as the pool for these peer-to-peer loans, which will be open-term and overcollateralized.

Each NFT collateral-loan pair will also have its own distinct Loan to Value (LTV) ratio. At the time of writing, the BAYC collection had an LTV of 60% and the Doodles collection had an LTC of 40%.

Binance is the newest entrant to the NFT lending space, which has grown into a $1 billion industry according to data from Dune. Some of the largest players include NFTfi and BendDAO, which have facilitated $429 million and $315 million worth of cumulative borrowing volume respectively over time. 

However, Blur’s recently launched Blend has quickly risen the ranks since its launch at the start of this month, and now commands 82% of the NFT lending market share.