Coinbase has unveiled a new feature that allows customers borrow up to $ 1 million in cash from their Bitcoin wallet yesterday.
“Great news for all # BTC… We are delighted to announce that eligible customers can now borrow up to US $ 1 million from Coinbase,” the company tweeted.
“Have you ever needed money for something urgent, like medical bills or car repairs? In the past, you may have sold Bitcoin to hedge it and suffered a taxable gain or loss. Now you don’t have to, ”the company says on its website.
The new feature does not involve any fees or credit checks, “just a low APR [annual percentage rate] 8%, according to its website. The borrowed money can be instantly added to PayPal or transferred through ACH to your bank account.
Customers can borrow up to 40% of the value of Bitcoin in their account, up to $ 1,000,000.
“Each month, you just have to pay the interest due (10 min.). Pay off the balance when you’re ready. The Bitcoin you use as collateral remains securely held by Coinbase. It is not loaned or used for any other purpose, ”according to the website.
Congratulations. One small step for Coinbase, one giant leap for #Bitcoin, “Microstrategy co-founder Michael Saylor tweeted.” Now you don’t have to sell your Bitcoin anymore.
Coinbase will also offer fixed-term loans, currently only available to Coinbase customers in Connecticut. These will allow customers to borrow up to 30% of the value of Bitcoin in cash, up to $ 100,000. They have an APR of 8% with no credit check.
See: Bank bets big on crypto, backs lending with Ethereum: “Bitcoin will always be gold, Ethereum will always be silver”
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The crypto platform has diversified its offerings at a rapid pace. More recently, he announced that he would launch an NFT marketplace at the end of 2021. His waiting list reached 1 million registrations in 24 hours, as previously reported GOBankingRates.
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This article originally appeared on GOBankingRates.com: Coinbase Offers Customers Up To $ 1 Million In Loans Using Bitcoin As Collateral