Coinbase to Stop Issuing New Loans Via Coinbase Borrow

May 10 is the final day customers will be allowed to take out new loans through the program.

AccessTimeIconMay 4, 2023 at 12:38 a.m. UTC
Updated May 9, 2023 at 4:13 a.m. UTC

Coinbase Borrow’s days are numbered.

Customers of the U.S.-based exchange who used the program – which allowed customers to borrow fiat loans up to $1 million against as much as 30% of their bitcoin holdings, with interest – received an email on Wednesday informing them that the last day to take out new loans would be May 10.

Coinbase has been under extra scrutiny from regulators following crypto exchange FTX’s collapse, and is expecting an enforcement action from the U.S. Securities and Exchange Commission (SEC) over alleged securities violations.

However, the closure of Coinbase Borrow seems – at least for now – to be unconnected to any enforcement action. A person familiar with the matter told CoinDesk the closure of Coinbase Borrow had nothing to do with either pending or past troubles with the SEC.

When contacted by CoinDesk, a spokesperson for the exchange attributed the decision to reduced demand.

“We regularly evaluate our products to ensure we’re prioritizing the offerings that our customers care about most,” the spokesperson said. “Effective May 10, we will stop issuing new loans through Coinbase Borrow. There is no impact on customers’ outstanding loans, and no action is required from them at this time.”

Coinbase Borrow launched in November 2021 and was advertised as a way to get fiat loans quickly without needing to sell bitcoin, which could incur a taxable gain or loss.

Edited by James Rubin.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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; 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.

Cheyenne Ligon

Cheyenne Ligon is a CoinDesk news reporter with a focus on crypto regulation and policy. She has no significant crypto holdings.

Nikhilesh De

Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.

Read more about