Coinbase to Wind Down Lending Program Over Coming Months
The exchange is requiring Coinbase Borrow customers with outstanding loan balances to pay them back by November 20.
Jul 20, 2023 at 8:37 p.m. UTC
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Coinbase Borrow, a program that allowed customers to receive fiat loans of up to $1 million against as much as 30% of their bitcoin (BTC) holdings, will be shutting down over the coming months as the company focuses its resources on products that “customers care about most,” a spokesperson told CoinDesk Thursday.
Customers who hold loans through the program will have until November 20, 2023 to pay back any outstanding loan balances.
“We have notified impacted loan holders and are taking extra measures to ensure a smooth transition for them, including providing a four-month loan repayment period and access to prioritized customer support through Coinbase One,” according to a statement sent to CoinDesk. Coinbase One is a monthly subscription product with multiple benefits for traders.
Coinbase announced in May that it was no longer allowing Coinbase Borrow customers to take out new loans as part of a regular process of re-evaluating its products.
The California-based exchange has been under increased scrutiny by U.S. regulators, specifically the Securities and Exchange Commission (SEC), for its operations in the U.S., and has been doubling down on its businesses elsewhere.
A spokesperson told CoinDesk back in May that the shutdown of Coinbase Borrow was simply due to reduced demand.
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Helene is a New York-based reporter covering Wall Street, the rise of the spot bitcoin ETFs and crypto exchanges. She is also the co-host of CoinDesk's Markets Daily show. Helene is a graduate of New York University's business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.