Coinbase has introduced a new service that allows customers to borrow up to $ 1 million in cash secured by BTC. The service is available in 20 US states.
By promoting the lending service, the company draws the attention of potential customers that now there is no need to sell bitcoins to obtain credit resources. To do this, it is enough to issue a loan and pledge BTC from an exchange wallet.
“We are pleased to announce that customers can borrow up to $ 1 million from Coinbase,” the company tweeted.
Big news for the #BTC set …
We’re excited to announce that eligible customers can now borrow up to $1 Million USD from Coinbase.
Learn more herehttps://t.co/3aKzoWkmqP pic.twitter.com/LC3s9ARp3K
— Coinbase (@coinbase) November 2, 2021
The money is provided without commissions and credit checks at a rate of 8% per annum. For the United States, this is a high rate, significantly higher than the market average. As of August 2021, the average interest rate on a consumer loan in the United States was 3.25%, and the minimum was 2%. Borrowed funds can be withdrawn to PayPal or transferred to a bank account through an automated clearing house. The minimum monthly interest payment is $ 10, the term of the credit line is 2 years.
Microstrategy co-founder Michael Saylor congratulated Coinbase on the successful launch of the loan project.
“One small step for Coinbase, one giant leap for #Bitcoin. Now you never have to sell your bitcoins. ” wrote he’s on Twitter.
Perhaps the traditional comparison with the flight of American astronauts to the moon and Sailor’s enthusiastic reaction is due to the fact that in September 2021 the cryptocurrency exchange Coinbase failed to launch the USDC APY secured lending program, and it abandoned plans after the SEC warning.
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