Coinbase Expands Cash Loan Limits Up to $1M with Bitcoin as Collateral
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Cryptocurrency exchange Coinbase now allows users to borrow up to $1 million in cash by putting up bitcoin (EXANTE: Bitcoin) as collateral with an 8% APR. According to an official web page of the service, the company is now expanding crypto loans to twenty states, including New York, New Jersey, and California.

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Coinbase says the expanded feature gives people a way not to sell their cryptocurrency when they need money urgently. The exchange notes loans backed by bitcoin solve the issue when users have to sell their assets to get fiat money and face a taxable gain. As of press time, users can borrow as much as 40% of the value of the bitcoin in their accounts.

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The announcement comes after Coinbase decided not to launch the USDC APY program. The exchange did not clarify why it dropped plans for its cryptocurrency lending program in September this year. As iHodl reported, Coinbase faced pressure from the US Securities and Exchange Commission (SEC). The agency — according to the exchange — threatened to sue the trading platform if it were to launch the stablecoin-focused business.

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