New Coinbase Feature Lets Bitcoin As Collateral For Up To $ 1 Million Cash Loan

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Coinbase users can now borrow up to $ 1 million in cash using their Bitcoin as collateral, this information has been revealed via the official Twitter account of the crypto exchange.

Coinbase users can borrow up to $ 1 million in cash

With this new feature, Coinbase customers in certain selected states in the United States could take a ‘line of credit’ without needing to show credit checks, instead they would use their BTC holding with the exchange as collateral. . One of the disadvantages of this new loan system is that users could not borrow more than 40% of their assets.

According to the exchange led by Brian Armstrong, borrowers can choose to withdraw the funds to their PayPal account or their traditional bank accounts. Although the exchange offers a number of flexible repayment methods, however, borrowers must pay a minimum of $ 10 monthly interest on the amount they could have borrowed.

Apart from that, a fixed-term loan option is also available on the platform, but it is currently limited to only Coinbase customers based in Connecticut. With this type of loan, customers could borrow 30% of the cash value of their Bitcoin holdings. They are eligible for a loan of up to $ 100,000 per year, and it attracts 8% monthly interest.

You will recall that Coinbase and the Securities and Exchange Commission (SEC) recently clashed over the crypto exchange decision to provide crypto lending services to its users.

Coinbase to introduce subscriptions?

In another development, Coinbase is preparing its work as it is reportedly looking to introduce a subscription service to users of its platform. This new service would allow the exchange to offer improved customer support and free trading to its users.

Through Bloomberg, the exchange is experimenting with this new feature due to increasing pressure from other trading platforms like Robinhood which do not charge their users any trading fees.

According to the information available, this new service is called “Coinbase One”. Analysts have predicted that this new development could make profits from the exchange, which are expected to reach $ 50 billion by 2025, more predictable.

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