Coinbase, one of the United States and the world’s largest and most popular cryptocurrency exchanges has revealed that they will soon begin offering Bitcoin (BTC) and crypto backed loans to their customers.
Coinbase customers will soon have the option to take out fiat loans against around 30 percent of the Bitcoin (BTC) they already hold. Not all loans will be in BTC, however, the digital asset will definitely back them.
To begin with Coinbase is only offering loans at this stage of up to $20,000, with interest rates on the loans locked in at 8 percent or less. If you decide to take out a loan with Coinbase, it must be paid back within 1 calendar year.
Head of Product at Coinbase, Max Branzburg commented,
“Customers may use bitcoin-backed loans in different ways depending on their financial needs, including for large expenditures like home or car repairs, financial major occasions like a wedding, or helping to manage higher interest personal loans or credit card debt.”
Currently the digital asset loan service is only available in 17 states across the United States, with people already putting their names down on a waiting list.