Cryptocurrency exchange Coinbase is now allowing customers to borrow as much as 40% of their bitcoin value up to $1 million with no credit checks, the company tweeted on Tuesday.
- The borrowing minimum and maximum amounts may vary by state, Coinbase added.
- The loans will be issued with an annual percentage rate of 8%, and borrowers won’t be required to show credit checks, Coinbase said.
- Customers can obtain the cash using their PayPal or bank accounts. They will need to make minimum $10 monthly interest payments, and Coinbase is offering flexible repayment schedules.
- Coinbase said that it won’t lend or otherwise use the collateralized bitcoin but instead continue to hold it.
- Earlier this year, Coinbase dropped plans for a crypto lending product after the U.S. Securities and Exchange Commission raised concerns. The lending product was supposed to power a crypto savings account that would earn customers a 4% annual percentage yield (APY), a return that’s multiples higher than most savings accounts at traditional banks.
Big news for the #BTC set …
We’re excited to announce that eligible customers can now borrow up to $1 Million USD from Coinbase.
— Coinbase (@coinbase) November 2, 2021
Source: Coin Desk