The leading United States digital currency exchange, Coinbase, has announced in a recent report that eligible customers will be able to borrow Bitcoin-backed cash loans from the exchange. This probably marks yet another development from Coinbase geared at engaging its users with the best crypto investing experience.
Coinbase will launch Bitcoin-backed cash loan service this fall
According to the exchange’s announcement on Wednesday, the Bitcoin-backed cash loan service will be launched this fall. However, the new service will only be available for the customers in the eligible states in the United States. Also, only the eligible customers have been invited to join the waitlist for the lending service.
Once launched, customers can borrow up to 30 percent or $20,000 using their Bitcoin holding as the collateral, according to Coinbase. One interesting part of Bitcoin-backed cash loans is that people can make out extra cash from their cryptocurrency holding to satisfy any present need, without having to sell those cryptos. Hence, they can avoid incurring any taxable gain or loss.
“We hear from customers that they need cash for expenses like home renovations or car repairs, but they do not want to prematurely sell their crypto, or take out high-interest loans that could come with 20%+ APR. With portfolio-backed loans on Coinbase, customers can borrow cash quickly from their Coinbase accounts.”
Coinbase exits crypto trade group
The US exchange has been launching new options over customers’ crypto investments. It recently added US dollar stablecoin, USDC, and Dai token in its supported crypto assets. For Dai token holders, Coinbase launched a reward program that will enable them to earn interest on their Dai tokens.
In a separate development, the exchange revealed on Wednesday that it is leaving the Blockchain Association, and any other working group it belongs to, with immediate effect.