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Coinbase Users Can Borrow Up to $1M With Bitcoin as Collateral

Coinbase Users Can Borrow Up to $1M With Bitcoin as Collateral

Coinbase Users Can Borrow Up to $1M With Bitcoin as Collateral

The crypto exchange’s customers can obtain cash via their PayPal or bank accounts.

The crypto exchange’s customers can obtain cash via their PayPal or bank accounts.

The crypto exchange’s customers can obtain cash via their PayPal or bank accounts.

By Michael Bellusci
AccessTimeIconNov 3, 2021, 5:25 PM
Updated May 11, 2023, 5:49 PM
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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 won’t 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 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.

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Michael Bellusci

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

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