Coinbase Allows Customers Borrow Against Their Bitcoin

Coinbase, a cryptocurrency exchange listed on the Nasdaq, now allows customers to borrow up $1 million using bitcoin collateral. There is no credit check and the company charges 8% APR. The exchange stated that bitcoin used as collateral was “safely held by Coinbase,” and stressed, “It’s never lent out or used any other purpose strong>

Customers can borrow up to $1M with Bitcoin as collateral from Coinbase

Coinbase, a cryptocurrency exchange, announced Tuesday

We are excited to announce that Coinbase now allows eligible customers to borrow up to $1,000,000 USD.

The Nasdaq-listed cryptocurrency exchange stated on its website that customers eligible for loans can use bitcoin as collateral to “Borrow Cash”, noting that borrowers will pay “just 8% APR without credit check.”

Customers can borrow up to 40% of the bitcoin value in their account. This is up to $1,000,000, according the company. The exchange explained that customers only have to pay $10 per month for interest, and there are no late fees or prepayments.

The exchange elaborated:

Coinbase will keep the bitcoin you used as collateral. It is not available for loan or use for any other purpose.

They currently offers credit to residents of the U.S. States of AK, AR and AZ.

Coinbase has recently abandoned plans to launch a lending program. The U.S. Securities and Exchange Commission threatened to sue the company for not launching the program. After that, the exchange published a proposal to regulate cryptocurrency with four core recommendations.