When taking crypto loans on Binance, many users wonder if they can pledge one token as collateral to borrow another. The answer is yes — Binance's crypto loan feature is inherently cross-token, allowing you to pledge BTC as collateral to borrow USDT, for example.
If you haven't registered, sign up for Binance to access crypto loans. It's more convenient on mobile — download the Binance app.
Supported Collateral Tokens
Binance supports multiple mainstream tokens as collateral, including BTC, ETH, BNB, USDT, and more. Different collateral tokens have different loan-to-value (LTV) ratios. Generally, the more mainstream the token, the higher the LTV — meaning the same collateral value lets you borrow more.
What Is the LTV Ratio
LTV is the ratio of your borrowed amount to your collateral value. For example, at 65% LTV, pledging 1,000 USDT worth of BTC lets you borrow up to 650 USDT.
Initial LTV ratios vary by token and are clearly displayed on Binance's loan page. There are also margin call and liquidation thresholds — when price movements push your LTV past these levels, you'll need to add collateral or partially repay.
Can You Mix Multiple Tokens as Collateral
Some Binance loan products support multi-token collateral combinations. You can pledge both BTC and ETH simultaneously, with the system calculating each collateral's value separately then aggregating.
Note that different loan products may have different rules. Some support multiple collateral types while others only accept specific tokens. Always read the product details carefully before borrowing.
What If Collateral Prices Drop
If your pledged token's price falls, your LTV ratio rises. When it hits the margin call level, Binance alerts you via app and email to add collateral. If the price continues dropping to the liquidation level, the system automatically sells part of your collateral to repay the loan.
To avoid liquidation, don't borrow the maximum amount — leave a safety margin. You can also set price alerts to take action when your collateral approaches dangerous territory.
Loan Interest Rates
Crypto loan rates are typically fixed at the time of borrowing. Rates vary by token and term. Short-term rates are generally lower than long-term, though frequent borrow-repay cycles increase operational costs.
What Happens at Maturity
When the loan matures, you need to repay the borrowed tokens plus interest. After repayment, your collateral is automatically released back to your account. If you don't repay at maturity, the system automatically uses your collateral for repayment.