You can now borrow up to $1 Million using Bitcoin as Collateral

Recently, the Nasdaq-listed crypto exchange Coinbase is planning to allow customers up to $1 million loans using bitcoin as collateral. The firm is charging 8% APR but without a credit check. According to the exchange, the bitcoin handled as collateral “remains safely held by Coinbase,” insisting, “It can’t lend out or be used for any other purpose.”

Customers Can Acquire Loan up to $1M With Bitcoin as Collateral from Coinbase

Cryptocurrency exchange Coinbase announced Tuesday:

We are glad to inform you that eligible customers can get loans up to $1 million from Coinbase now.

On its website, the Nasdaq-listed crypto exchange wrote that eligible customers can “Borrow cash using bitcoin as collateral,” noting except borrowers are going to “Pay just 8% APR with no credit check.”

The company informed that clients can get the loan as much as 40% of the current value of the bitcoin in their account, up to $1 million. “Each month you are only expected to repay the payment due ($10 min),” Coinbase continued that it is without prepayment or late fees.

“This type of loan has a trade feature and is repayable within 2 years of starting,” Coinbase continued, explaining:

The bitcoin you are using as collateral remains safely held by Coinbase. It can’t lend out or use for any other purpose.”

The credit given by Coinbase is currently open to citizens of the following U.S. states OH, OR, TN, AK, AR, AZ, CA, FL, ID, IL, NC, NY, TX, UT, NE, NH, NJ, VA, WA, and WY.

Recently, the Coinbase dropped its plan to start a lending plan after the U.S. Securities and Exchange Commission (SEC) warned to accuse the company if it progressed with the launch. The exchange then issued a plan for cryptocurrency settlement with four core support.

What do you believe regarding Coinbase allowing consumers to acquire up to $1 million with bitcoin as collateral? Let us identify in the comments below.