Binance has expanded access to its Institutional Loan service, allowing all KYB-verified VIP clients to use the product while also introducing higher leverage limits, fixed-rate loans, and a new interest rebate system.
Previously, the service was only available to higher-tier VIP 5 users, but Binance says all verified VIP clients can now access institutional borrowing features.
Under the updated system, eligible users can now borrow with leverage of up to 5x, compared to the previous 4x limit. The exchange also increased Initial Loan-to-Value ratios from 75% to 80%, while Transfer-Out LTV limits were raised from 75% to 83%. However, margin call and liquidation levels remain unchanged at 85% and 90%.
Binance also introduced fixed-rate borrowing options with terms lasting 30, 60, or 90 days. The company says this will help institutional traders better manage financing costs while using funds for margin and futures trading.
Catherine Chen said institutional clients need faster and more flexible access to liquidity, adding that the system allows users to borrow against combined account balances without moving collateral between accounts.
Starting June 1, 2026, Binance will also launch an interest rebate program. Borrowers who meet certain targets tied to trading volume, open interest, or asset growth may qualify for full monthly interest rebates.
According to Binance, the rebate program covers loans taken in USDT, USDC, BTC, and United Stables ($U), with borrowing support reaching as high as $10 million. The platform also allows users to combine collateral from up to 10 sub-accounts when borrowing USDT or USDC.
The expansion comes as Binance continues facing regulatory pressure in the United States. Recent reports said the US Treasury requested records and employee interviews connected to possible sanctions compliance issues involving Iran-linked activity. Binance says it continues cooperating with US authorities and compliance monitors following its earlier settlement with regulators.
