Back

Coinbase Users Will Soon Be Able to Borrow Cash with Bitcoin

author avatar

Written by
Colin Adams

editor avatar

Edited by
Ryan Smith

13 August 2020 14:39 UTC
Trusted
  • Coinbase is set to begin offering bitcoin-backed loans to U.S. customers
  • The new program caps credit lines at $20,000 per customer
  • The initial launch of the product will only be available in seventeen states
Promo

In a Tweet posted yesterday, Cryptocurrency giant Coinbase announced that its U.S. customers (in select states) will soon be able to borrow a percentage of their bitcoin holdings in cash.

On the Coinbase blog, product manager Thorsten Jaeckel elaborated,

with today’s announcement, we want to give our customers even more control over their crypto investments while offering secure access to cash at the same time.

Sponsored
Sponsored

He continued,

US customers in eligible states* are now invited to join the waitlist for the option to borrow up to 30% of their Bitcoin holdings.

Coinbase
Source: Coinbase

As one of the most highly regulated crypto exchanges to launch a lending product, Coinbase is setting cautious limitations on would-be borrowers. The new program caps credit lines at $20,000 per customer and offers an 8% interest rate for bitcoin-backed loans that are one year or less.

Intended to be easy to use, the program does not require borrowers to fill out a lengthy application or go through a credit check. Customers can “simply sign up with a few taps and get the cash in their accounts within 2–3 days.”

Coinbase is not the only company to test the idea. According to Tech Crunch, Square’s crypto-friendly Cash App also recently announced that it is trialing a lending product that will give customers short-term microloans.

Initially, the new Coinbase product will only be available in seventeen states as the company works to get licenses for the rest. The eligible states include Alaska, Arkansas, Connecticut, Florida, Georgia, Illinois, Massachusetts, New Hampshire, New Jersey, North Carolina, Oregon, Texas, Virginia, Nebraska, Utah, Wisconsin, and Wyoming.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.