One of the biggest cryptocurrency exchanges in the world, Coinbase, has announced that it would stop offering new loans secured by bitcoin through its Borrow program. Users were formerly able to borrow money from the firm using their bitcoin as security, however this option is no longer accessible.
In a formal declaration, Coinbase stated that it will discontinue making loans on September 30, 2023. Users who have already borrowed money using their bitcoin as collateral must repay it before that date. Those who are unable to pay back their loans by then will automatically have their collateral sold to pay the remaining balance.
It is not altogether shocking that Coinbase’s Borrow service is ending. The cryptocurrency market has experienced severe price volatility and a steep fall in trading volume over the past year. Since many investors had to liquidate their holdings, they were reluctant to take on additional debt.
Coinbase will continue to provide other services, like as its wallet and trading platform, in addition to its recently introduced Coinbase One membership package. Users who could be affected by the termination of the Borrow service are urged to get in touch with Coinbase support for further details on how to pay back their loans.