Binance Exchange Launches Institutional Loans With 4X Leverage

Leading crypto exchange giant Binance has announced the launch of Institutional Loans for a select class of its customers.

This latest offering is a new cross-collateralized product for verified corporate users. The service offers up to 4x leverage using pooled balances across ten sub-accounts.

The project aims to enhance capital efficiency and facilitate faster trading decisions among users.

New Access to Capital for Verified Institutions on Binance

According to its official statement, Binance Exchange introduced its Institutional Loans product on July 3, 2025.

As revealed, the loan was designed specifically for high-volume corporate users.

It is worth noting that the new loan service allows verified institutional clients to access large credit lines.

These clients must either meet VIP 5 trading status or receive manual approval from Binance.

Once approved, they can borrow between 1 and 10 million USDC or USDT. The loan is secured using the combined net equity from up to ten linked sub-accounts.

The Institutional Loans product offers up to 4 times leverage without requiring users to consolidate funds across multiple accounts.

As spotlighted by CEO Richard Teng, Binance mentioned that borrowed funds are issued to a dedicated sub-account.

It utilizes either Cross Margin, Portfolio Margin, or Portfolio Margin Pro. This is where the funds can be used for trading across Binance’s Margin and Futures platforms.

Collateral accepted spans over 400 supported assets, including BTC, ETH, SOL, BNB, USDT, and USDC.

These assets are drawn from various account types, each with its own collateral ratios and haircut policies.

Spot assets are not subject to haircuts, allowing borrowers to access maximum value.

In contrast to traditional margin products, which rely on collateral from a single account, this cross-collateralized approach enables faster execution by eliminating the need for manual fund transfers.

Institutions can unlock zero-interest borrowing if they meet Binance’s defined performance criteria under its rebate program.

Streamlined Setup and Flexible Borrowing Options

The process to apply for Binance Institutional Loans begins with confirming user eligibility.

According to the update, anyone who wants to use the loan must first complete Know-Your Business (KYB) verification.

Basically, this is the crypto exchange’s way of confirming the company’s identity.

After that, they either need to hit a certain level of trading volume (VIP 5) or get approval from Binance’s Margin Team.

If they are approved, the next step is to choose which of their sub-accounts they want to use as collateral.

Once everything is set, Binance sends the loan directly into a special account created for that purpose.

Clients must monitor their loan-to-value (LTV) ratio, with margin calls triggered at 85% and liquidation initiated at 90% if additional collateral is not provided.

Borrowed assets can be used immediately across Margin and Futures markets.

Also, Binance’s infrastructure supports low-latency execution, particularly for high-frequency trading strategies.

This will be done by pairing Portfolio Margin setups with a Margin Special API Key.

Binance Institutional Loans Enhance Capital Efficiency

It is worth mentioning that the launch of Binance Institutional Loans addressed a longstanding challenge for large-scale traders.

This is accessing capital quickly when assets are distributed across multiple accounts.

By pooling collateral and offering leverage through a centralized risk unit, the loan service enables institutions to act swiftly in volatile markets.

This flexibility can be critical in use cases such as short-term arbitrage, where timing is essential.

Instead of waiting for internal fund transfers, institutions can now deploy leveraged capital directly from their existing balances.

Binance confirmed that access to this product depends on regional regulations and user eligibility.

Interested companies were advised to contact their VIP representative or email vip@binancedotcom for assistance with onboarding.

Meanwhile, Binance Smart Chain recently reached $5.8 Billion in 24-hour DEX volume. This made it surpass the combined volume of Solana and Ethereum.