Now, Bitcoin Can Be Loan Collateral For 1 Million US Dollars

Coinbase lends one million US dollars with Bitcoin guarantee (Cryptonomist)

JAKARTA – One of the largest crypto exchanges in the United States, Coinbase announced on Tuesday, November 2 regarding a loan service of 1 million US dollars (approximately IDR 14.3 billion).

“We are pleased to announce that eligible customers can now borrow up to 1 million US dollars from Coinbase."

The announcement was written on the official Coinbase website, users can "Borrow cash using bitcoin as collateral". In addition, borrowers only need to “pay 8 percent APR without a credit check."

Coinbase explained that users can borrow as much as 40 percent of the value of their bitcoins on the platform up to 1 million US dollars. “Every month you only have to pay the interest that is due (minimum $10)," Coinbase said, adding that there are no upfront payments or late fees.

“This line of credit has a demand feature and can be repaid within 2 years of opening."

Coinbase also explained that the bitcoins that are guaranteed will remain safe for Coinbase. The guarantee will not be loaned or used for anything else. The lines of credit offered by Coinbase are currently available to residents of the following US states: AK, AR, AZ, CA, FL, ID, IL, NC, NE, NH, NJ, NY, OH, OR, TN, TX, UT, VA, WA, and WY.

In addition, the company also canceled the planned launch of the loan program after the US Securities and Exchange Commission (SEC) said it would sue the company if it continued to launch the program. Then Coinbase published a proposal for crypto regulation with four core recommendations as reported by Bitcoin.com.