Coinbase Borrow Will Stop Lending Against BTC
Coinbase will be ending its Borrow service on May 10, through which users could take out loans of up to $1 million at a rate of 9% per annum without undergoing a credit check, with Bitcoin used as collateral.
The exchange has sent notifications about this to its clients. This service was introduced in November 2021 as a way to acquire fiat funding without incurring the tax implications of selling Bitcoin.
The reasons for the termination of Borrow have not been specified.
Coinbase stated that they “regularly evaluate [their] products to prioritize those that our customers are most interested in.”
The SEC recently sent Coinbase a notice regarding an investigation into its listing process and its products – Coinbase Prime, Coinbase Wallet and the staking service Coinbase Earn.
In response, the company expressed its willingness to “resolutely defend itself” and noted that the SEC may suffer reputational damage due to the proceedings.
