Binance has expanded access to institutional loan products to all KYB-verified VIP customers while introducing higher leverage limits, fixed-rate borrowing terms, and a new interest rate rebate program related to trading activities.
According to a May 11 press release, Binance said the update removes the previous VIP 5 requirement and allows all KYB-verified VIP users to access institutional lending products. The exchange will also increase leverage limits for eligible clients from 4x to 5x, and the change will automatically apply to existing users and newly onboarded users.
Under the revised structure, the initial loan-to-value ratio increased from 75% to 80% and the transfer LTV excluding spot collateral increased from 75% to 83%. Binance said the margin call and liquidation thresholds will remain unchanged at 85% and 90%.
Institutional investors now have access to fixed-rate term loans with terms of 30, 60, and 90 days. Binance said the addition is aimed at giving customers more control over their funding costs while using borrowed funds for margin and futures trading.
“Institutional clients require fast, flexible and capital-efficient access to liquidity,” said Catherine Chen, Head of VIP and Institutional Investors at Binance.
Chen added that the product allows customers to borrow against their combined account capital without transferring collateral between accounts.
Binance said that starting June 1, 2026, borrowers will be eligible to receive a full monthly interest rebate through the Interest Rebate Program by achieving goals related to incremental volume share, open interest, or net asset value growth.
According to Binance, this rebate program applies to borrowing on: $USDT, $USDCBTC, and $U, also known as United Stables, with loan ranges up to $10 million.
The exchange says institutional loans allow customers to combine collateral from up to 10 sub-accounts when borrowing. $USDC or $USDT. Binance added that the product will continue to be available to KYB verified customers from VIP 1 status.
The expansion comes days after Bloomberg reported that the U.S. Treasury Department has put pressure on Binance over its compliance obligations in a 2023 settlement with U.S. authorities. Bloomberg reported that Treasury officials have requested interviews and records from officials related to alleged sanctions violations involving Iranian-related entities. Binance said last week that it would continue to engage with monitors and U.S. government agencies.
A February Senate letter reviewed by crypto.news called on the Treasury Department and Justice Department to investigate Binance’s sanctions management following reports related to Iran-related crypto activity.
