Binance has significantly broadened its Institutional Loan product, making it available to all KYB-verified VIP clients, a departure from the previous requirement that limited access to VIP 5 users and above. The expansion, announced on May 11, 2026, introduces higher leverage, increased loan-to-value (LTV) ratios, fixed-rate borrowing terms, and an upcoming interest rebate program tied to trading activity.
Under the new structure, eligible borrowers can now access up to 5x leverage, up from the prior 4x cap. The exchange also adjusted LTV ratios: the Initial LTV increased from 75% to 80%, while the Transfer-Out LTV (excluding spot collateral) rose from 75% to 83%. Margin Call and Liquidation LTV thresholds remain at 85% and 90%, respectively. Binance added fixed-rate loans with durations of 30, 60, and 90 days, designed to give institutions more predictable financing costs.
To further incentivize borrowing, Binance will launch an Interest Rebate Program effective June 1, 2026. Clients can qualify for full monthly interest rebates by meeting performance targets linked to incremental trading volume share, Open Interest, or Net Asset Value growth. The program covers borrowing in USDT, USDC, BTC, and the $U United Stables stablecoin, with loan coverage of up to $10 million. Institutional clients can combine collateral across up to 10 sub-accounts when borrowing USDC or USDT.
“Institutional clients need fast, flexible and capital-efficient access to liquidity,” said Catherine Chen, Head of VIP & Institutional at Binance. “Binance Institutional Loan helps clients borrow against combined account equity without moving collateral between accounts. With eligibility now expanded to all KYB-verified VIP clients, more institutional participants can access this efficient financing solution.”
The update comes amid ongoing regulatory scrutiny. Bloomberg recently reported that the U.S. Treasury pressed Binance over compliance obligations related to its 2023 settlement, including potential sanctions violations involving Iran-linked entities. Binance stated it continues to engage with the monitor and U.S. agencies.
