Cryptocurrency exchange Coinbase announces that eligible clients can now borrow up to $ 1 million. Most importantly, using Bitcoin (BTC) as collateral.
Have you ever needed money urgently for something that cannot be postponed? Beforehand, you surely should have sold your Bitcoins. Now it is not necessary.
“We are pleased to announce that eligible clients can now borrow up to $ 1 million.”
Borrow from Coinbase to get cash without selling your Bitcoin. No fees or credit checks involved. Just an annual interest rate.
In this regard, Max Branzburg, Head of Product at Coinbase, said: “Clients can use loans depending on their financial needs. Including for large expenses such as home or car repairs, financing of large occasions such as a wedding. Or help manage high-interest personal loans or credit card debt. ‘
Can Coinbase be the new bank or money lenders, with Bitcoin as collateral?
To recall, when Coinbase tried to launch its crypto product ‘Lend’, the United States Securities and Exchange Commission (SEC) threatened to sue if it proceeded with the launch. Therefore, later Coinbase, abandoned the plan.
Currently, according to Coinbase: ‘Bitcoin, used as collateral, will remain securely on Coinbase. It will not be loaned or used for any other purpose. “
On the Coinbase website, it is explained that eligible customers can borrow cash using Bitcoin as collateral, through PayPal or bank accounts. Noting, that borrowers will pay only 8% of the annual interest applied to the operation (effective as of June 1, 2021), without a credit check.
In addition, it indicates that customers can borrow up to 40% of the value of the Bitcoin in their account, up to a million dollars. “Each month you only need to pay the interest owed.” In addition, there are no advance payments or late fees.
“This line of credit has a demand feature and is paid within 2 years after opening.”
Where is the loan available?
By the way, the line of credit offered by Coinbase is currently available to residents of the following US states: Alaska, Arkansas, Connecticut, Florida, Georgia, Illinois, Massachusetts. Also, New Hampshire, New Jersey, North Carolina, Oregon, Texas, Virginia, Nebraska, Utah, Wisconsin, and Wyoming.
However, Coinbase is seeking licenses in other regions and countries to be able to expand its loan service.
In fact, the minimum and maximum loan amounts can vary by state. Visit and follow the prompts at coinbase.com/borrow to see if you qualify.
So if you are an eligible Coinbase customer, you can borrow up to 40% of your Bitcoin (BTC) balance on Coinbase. Up to a maximum that varies according to your state of residence:
$ 100,000 in Nebraska and Virginia $ 1 million in all other states listed above
The minimum amount you can borrow is $ 100 in most states, except as noted below:
Ohio: $ 1,001 minimum Arizona, California: $ 10,001 minimum
It is worth noting, that Coinbase does not report any information or activity related to loans to the credit reporting agencies at this time.
I close with this phrase by Paulo Coelho: “When you really want something, the whole universe conspires to help you get it.”