Coinbase Offers Customers Up To $ 1 Million In Loans Using Bitcoin As Collateral

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Coinbase yesterday unveiled a new feature that allows customers to borrow up to $ 1 million in cash from their Bitcoin wallet.

See: Coinbase Expands Banking Services By Allowing Users To Deposit Paychecks To Their Accounts
Find: Coinbase Fees: Here’s a Full Breakdown of How to Keep Costs Down

“Great news for the whole # BTC… We are delighted to announce that eligible customers can now borrow up to US $ 1 million from Coinbase,” the company tweeted.

“Have you ever needed money for something urgent, like medical bills or car repairs? In the past, you may have sold Bitcoin to hedge it and suffered a taxable gain or loss. Now you don’t have to, ”the company says on its website.

New feature comes with no fees or credit checks, “just a low APR [annual percentage rate] 8%, according to its website. The borrowed money can be instantly added to PayPal or transferred through ACH to your bank account.

Customers can borrow up to 40% of the value of Bitcoin in their account, up to $ 1,000,000.

“Each month, you only have to pay the interest due ($ 10 min). Pay off the balance when you’re ready. The Bitcoin you use as collateral remains securely held by Coinbase. It is not loaned or used for any other purpose, ”according to the website.

Congratulations. One small step for Coinbase, one giant leap for #Bitcoin, “Microstrategy co-founder Michael Saylor tweeted.” Now you don’t have to sell your Bitcoin anymore.

Coinbase will also offer fixed-term loans, currently only available to Coinbase customers in Connecticut. These will allow customers to borrow up to 30% of the value of Bitcoin in cash, up to $ 100,000. They have an APR of 8% with no credit check.

See: Bank bets big on crypto, backs loans with Ethereum: “Bitcoin will always be gold, Ethereum will always be silver”
Find: Cryptography Understanding Study: 98% of People Don’t Understand the Basics of Bitcoin, Stablecoins, or NFT

The crypto platform has diversified its offerings at a rapid pace. Most recently, it announced that it will launch an NFT marketplace at the end of 2021. Its waitlist has reached 1 million registrations in 24 hours, as previously reported by GOBankingRates.

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About the Author

Yael Bizouati-Kennedy is a former full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She has also worked as a vice president / senior content writer for large New York-based financial firms including New York Life and MSCI. Yael is now a freelance writer and most recently co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare”, with Dr Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, one in journalism from New York University and one in Russian studies from Toulouse-Jean Jaurès University, France.

James V. Hayes