Coinbase, a major American cryptocurrency exchange, is preparing to launch the Borrow loan service in the United States, within which customers will be able to receive loans in US dollars secured by bitcoins.
The launch of Coinbase Borrow is scheduled for this fall, while initially only 17 US states will be able to use the service. However, in the future it is planned to expand the geography of the lending service. In addition, if at first it will be possible to provide loans only with bitcoins, then later they will add support for other cryptocurrencies.
Clients will be able to receive in cash up to 30% of the value of collateralized bitcoins, while the maximum loan amount will be $ 20,000. Clients will pay 8% per annum for using the loan, and the maximum term will be 12 months. The rate will become the same for all customers, but the service reserves the right to revise the terms of the loan, based on various factors.
According to BlockFi, which already provides loans secured by cryptocurrencies, customers usually borrow funds for short-term needs, such as fixing a car or renovating a house. The cryptocurrency ecosystem allows you to take out loans without having to fill out huge applications and go through credit checks.
As a reminder, in July, exchanges Coinbase, Gemini, Kraken and Bittrex announced plans to launch a system for the exchange of user data in order to comply with the requirements of the Financial Action Task Force on Money Laundering (FATF).
