Cryptocurrency exchange Coinbase is sunsetting bitcoin-backed (EXANTE: Bitcoin) loans via the Borrow services after three years of operating, Bloomberg reports, citing the company's statement.
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According to the report, Coinbase will stop issuing new BTC loans on May 10, 2023. The exchange didn't explain the reason behind the move, but noted it is evaluating products to ensure "we're prioritizing the offerings that our customers care about most."
Coinbase provided bitcoin-backed loans up to $1 million. Customers could put bitcoin as collateral but only in select US states. The exchange allowed borrowing up to 40% of the value of BTC at an annual interest rate of 8.7%.
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