Coinbase to Allow Users Borrow $1 Million Using Bitcoin as Collateral
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Cryptocurrency exchange Coinbase will now allow users to borrow up to 40% of their bitcoin capital
Users can collect loans that extend as high as $1 million with an annual percentage rate of 8%
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The collateralized Bitcoin will however not be used by the exchange but held until the loan is repaid
Cryptocurrency exchange Coinbase will now allow users to borrow 40% of their Bitcoin holdings in cash, up to $1 million.
The company disclosed the initiative on Tuesday via Twitter, while revealing that no credit checks are required for the loan.
The crypto exchange stated that the maximum and minimum loans may vary based on the state where the customer resides.
The loans are being offered with an annual percentage rate of 8% and the case be obtained via the user’s Paypal or bank account.
Users will need to make minimum of $10 monthly interest payments and Coinbase will offer various repayment schedules.
Meanwhile, the Bitcoin used as collateral will not be lent out or used by the exchange but instead, continue to be held.
Read also: JP Morgan Predicts Bitcoin to $146,000
In addition, the company will not report borrowers’ loan-related information to credit reporting agencies.
US-based crypto exchange Coinbase is one of the biggest worldwide and it offers services to over 100 countries worldwide.
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