Binance has expanded access to its Institutional Loan service, allowing all KYB-verified VIP users to borrow against crypto holdings while introducing higher leverage, fixed-rate loans, and a new interest rebate program.
The exchange announced on May 11 that the previous VIP 5 requirement has been removed, meaning institutional users verified under Know Your Business (KYB) rules from the VIP 1 level can now access the product.
“Institutional clients need fast, flexible and capital-efficient access to liquidity.” — Catherine Chen, Head of VIP & Institutional
Built for exactly that. Binance Institutional Loan is now open to all KYB-verified VIP clients. 5x leverage. Fixed-rate terms. Interest rebates up…
— Binance VIP & Institutional (@BinanceVIP) May 11, 2026
Binance also increased its leverage cap from 4x to 5x for eligible clients. The update applies automatically to both current and new users using the institutional borrowing service.
Under the revised lending structure, the Initial Loan-to-Value (LTV) ratio has been raised from 75% to 80%. Transfer-Out LTV, excluding spot collateral, also increased from 75% to 83%. Margin Call and Liquidation levels remain unchanged at 85% and 90%.
Binance adds fixed-rate crypto loans
The crypto exchange has also launched fixed-rate borrowing options with 30-day, 60-day, and 90-day terms, giving institutional traders more predictable financing costs when trading futures and margin products.
According to Catherine Chen, Head of VIP and Institutional at Binance, the updated structure is designed to give institutional traders faster and more flexible access to liquidity without moving collateral between multiple accounts.
Binance said borrowers can use combined collateral across up to 10 sub-accounts when taking loans in USDT or USDC. The platform added that clients can borrow against combined account equity, improving capital efficiency for larger trading firms and market participants.
Interest rebate program launches in June
Starting June 1, Binance will introduce an Interest Rebate Program tied to trading activity and account growth metrics. Institutional borrowers may qualify for full monthly interest rebates by meeting targets linked to trading volume share, Open Interest, or Net Asset Value growth.
The rebate program will apply to loans borrowed in USDT, USDC, BTC, and United States Dollar-pegged stablecoin $U, with loan coverage reaching up to $10 million.
The expansion comes amid compliance pressure from the U.S.
From recent reports, the U.S. Treasury had requested interviews and records tied to Binance’s 2023 settlement with U.S. authorities over possible sanctions-related concerns involving Iran-linked entities.
The U.S. Department of Justice (DOJ) also reportedly investigated whether Iranian actors used the cryptocurrency exchange Binance to bypass U.S. sanctions and route funds through the platform.
This has prompted Binance to strengthen its communication with regulators to ensure compliant operations and maintain market trust.
Institutional traders are becoming the market’s main focus
Binance’s latest move shows how crypto markets are becoming more focused on institutional traders. Large investors now want tools similar to traditional finance, including easier access to liquidity, flexible collateral options, predictable borrowing costs, and better capital management.
By expanding its Institutional Loan service, Binance is strengthening its position in the institutional crypto market. The exchange is making borrowing easier to access while linking incentives like rebates to trading activity, which could attract more professional traders and firms.
The introduction of fixed-rate loans may also appeal to institutions looking for stable financing costs in volatile markets. However, the product still carries risk. Higher leverage can increase gains, but it can also lead to larger losses if the market moves against borrowers. Institutional clients will still need high-risk and collateral management despite the added flexibility.
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