Coinbase has announced that it will no longer issue new loans via its Coinbase Borrow program, effective May 10. The decision comes as a surprise, as the program has been highly sought after since its launch in November 2021. Coinbase Borrow allowed customers to take out fiat loans, up to the value of $1 million, against as much as 30% of their bitcoin holdings. However, the crypto exchange has stated that the reason for the closure is due to a decrease in demand from customers.

The closure does not seem to be connected to any regulatory issues that Coinbase is currently facing, and a spokesperson for the company has said that the decision was made after evaluating their product offerings to prioritize what their customers wanted the most. Coinbase stressed that the closure would have no impact on the outstanding loans, and no action is required from customers.

Coinbase Borrow was an efficient way for customers to access capital without needing to liquidate their bitcoin for fiat, which could incur costly taxes. This announcement has left customers of the crypto exchange wondering what other alternatives are available to them when they need access to fiat loans. It also remains to be seen if Coinbase Borrow will remain closed or if they will relaunch the program in the future when demand increases again.



Other News from Today