Bitcoin-Backed Loans by Coinbase Exchange
Hello Everyone,
I have been in crypto for over 2.5 years and during this period I have bitcoin even at almost 20k USD and also at 4k price mark. Although it was only once when it was at 20k but there have been multiple instances when the bitcoin price was less than 5k USD.
Every time bitcoin price crosses 10k price then you can see lots of good news about crypto and it feels like crypto is doing and you more positivity all around. I have noticed it all the times and every time it happens. I hope you guys would have also noticed this. Now since bitcoin price is between 11-12k USD so its same happening again.
Coinbase is going to offer Bitcoin-Backed Loans to its customers US and they can borrow fiat against their bitcoin holding up to 30%. As of now, coinbase exchange operates in 32 countries but this service will be starting in the US only however they might expand to other countries in future.
Customers may use bitcoin-backed loans in different ways depending on their financial needs, including for large expenditures like a home or car repairs, financing major occasions like a wedding, or helping to manage higher-interest personal loans or credit card debt,โ Max Branzburg, head of product at Coinbase, said in an emailed statement. The product is available in only 17 states but Coinbase is pursuing licenses in other states and countries to be able to expand its lending service.
This is a good move by the exchange and it will encourage people to hold their digital holding when they need the money and lend money against it. In the current scenario, people usually sell of when they have money requirements. Lending service is a part of banking sector and we banking gets involved with cryptos then its going to help the crypto community.
Coinbase is a leading and now since they have started this leaning service so I hope many more exchanges might come forward to offer similar services. I like this service by coinbase and I also hope that they expand it soon to other countries as well. After Trading and staking this lending will be a nice addition to make crypto holding even more beneficial and I hope this will also reduce selling pressure provided an adequate number of exchanges start this service.
