Cryptocurrency exchange Coinbase is now allowing customers to borrow as much as 40% of their bitcoin value, up to $1 million, with no credit checks, the company tweeted on Tuesday.
The borrowing minimum and maximum amounts may vary by state, Coinbase added. The loans will be issued with an annual percentage rate of 8%, and borrowers won’t be required to show credit checks, Coinbase said. Customers can obtain the cash using their PayPal or bank accounts. They will need to make minimum $10 monthly interest payments, and Coinbase is offering flexible repayment schedules. Coinbase said that it would not lend or otherwise use the collateralized bitcoin but instead continue to hold it. Earlier this year, Coinbase dropped plans for a crypto lending product after the U.S. Securities and Exchange Commission (SEC) raised concerns. The lending product was supposed to power a crypto savings account that would earn customers a 4% annual percentage yield (APY), a return that’s multiples higher than most savings accounts at traditional banks.
Big news for the #BTC set …
We’re excited to announce that eligible customers can now borrow up to $1 Million USD from Coinbase.
— Coinbase (@coinbase) November 2, 2021