Cryptocurrency exchange Coinbase announced a service of lending in Fiat secured by bitcoin. The service will be available to customers in 17 us States.
At the initial stage, the maximum loan amount will be $20,000 per client, and the total amount of funds issued will be limited to 30% of the value of the bitcoins available on the exchange's balance.
The maximum loan term will be 12 months with a fixed rate of 8% per annum. Coinbase considers this offer attractive against the background of current alternatives, sometimes exceeding 20% per annum.
For example, interest rates in the BlockFi lending service vary depending on the client's risk profile and start at 4.5% per annum.
Coinbase allows conditions to be revised when market conditions change.
Customers do not need to spend time filling out questionnaires or passing credit checks. They will be able to receive funds within two to three days. According to representatives of Coinbase, for many this will be a good opportunity to close the acute need for liquidity without the need to sell bitcoins.
Initially, customers from Alaska, Arkansas, Connecticut, Florida, Georgia, Illinois, Massachusetts, new Hampshire, new Jersey, North Carolina, Oregon, Texas, Virginia, Nebraska, Utah, Wisconsin and Wyoming will be able to use this service. To do this, you need to submit an application and get on the waiting list.
In a conversation with the Block, a company representative announced plans to expand assets in the lending service, as well as obtain licenses in other States.
At the end of July, Coinbase announced that users ' deposits in the Dai stablecoin will be charged 2% per annum. Since last year, users of the exchange receive remuneration of 1.25% per annum on deposits in the USDC stablecoin.