Coinbase is rolling out Bitcoin-backed loans nearly two years after it discontinued its Borrow service, right as the world's oldest cryptocurrency is soaring to new heights.
Customers can borrow up to $100,000 in USDC stablecoin instantly through the firm's centralized exchange platform, Coinbase The following are some of the ways to get in touch with each other The statement was released on Thursday. Morpho is a lending protocol that has been popularized on Base, an Ethereum layer-2 platform coined by Coinbase.
A representative from Coinbase said that the loans would be collateralized for 133% of value. Decrypt. Morpho automatically calculates interest rates based on changing market conditions. The repayment schedules are not limited or time-limited as long as you maintain a high loan-to-value.
Coinbase introduced loans secured by Bitcoin in November 20,21. Stop issuing them in May 2023 amid the crypto market downturn—and just a few weeks after the trading firm reportedly learned that it might face an enforcement action The SEC. Coinbase also launched around the same time. It has escalated its current legal battle against federal regulators.
Coinbase attributes the decision to discontinue lending services at that time to changing customer demand. Bitcoin loans are being reintroduced soon after digital currency prices hit an all-time record high. Over $108,000.
The token's value has remained elevated on a wave of bullish news following Donald Trump’s election win: a number of lawmakers are floating Bitcoin Reserve proposals The SEC is reportedly considering a move to regulate the SEC at the federal level. Pause enforcement actions against companies selling digital assets and make other crypto-friendly changes under President-elect Trump's incoming administration.
CoinGecko: Bitcoin currently trades at $105,500. shows.
Coinbase says that traders will have access to the Bitcoin-backed loans throughout the United States, except New York. The trading platform plans to expand Bitcoin-collateralized loans to other markets in the future, in addition to launching other crypto-backed lending options.
Andrew Hayward is the editor