Coinbase Will Offer Bitcoin-Based Cash Loans Up To $20,000 In 17 US States CryptoGlobe
US crypto exchange Coinbase will begin offering bitcoin-backed cash loans to select customers as early as next month. Investors can borrow up to 30% of the bitcoin they hold on the exchange, or a maximum of $20,000, he said.
In one blog post on August 13, Coinbase unveiled its new crypto lending business, which puts it in competition with Nexo and Blockfi. The service charges an annualized interest rate of 8% for borrowings of one year or less.
Coinbase said interested customers can get money into their accounts in two to three days with just a few clicks. It aims to make the loan process as cumbersome as possible so that application procedures have been shortened and problems such as credit checking eliminated.
Initially, the service will only be available in 17 select US states. They are: Alaska, Arkansas, Connecticut, Florida, Georgia, Illinois, Massachusetts, New Hampshire, New Jersey, North Carolina, Oregon, Texas, Virginia, Nebraska, Utah, Wisconsin and Wyoming.
The exchange, which has more than 35 million users worldwide, is working to secure licenses to add more cryptocurrencies as well as expand to pending jurisdictions, he said.
“We want to give our customers even more control over their crypto investments while providing secure access to cash at the same time,” Coinbase said in the post.
“We’re hearing from customers saying they need cash for things like home renovations or car repairs, but they don’t want to prematurely sell their crypto or take out high-interest loans…” , he added.
A number of companies seem interested in joining the crypto lending industry. Square’s Cash App, a cryptocurrency-enabled peer-to-peer payment platform, announcement that it is testing a loan product that will grant users short-term loans of between $20 and $200. Interest rates will be 5% per month.
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