Mentioned:
Coinbase is bringing something back: using Bitcoin for loans.
What’s happening:
- Coinbase (NASDAQ: COIN) has officially re-launched Bitcoin-backed loans to users in the United States of America
How it works:
- Coinbase users can now leverage their existing Bitcoin holdings that are on the Coinbase platform and use it as collateral for instant borrowing
- The loans are distributed in USDC and users will initially be able to access up to $100,000 USD through Bitcoin-backed loans
Why it matters:
- Coinbase has been consistently building more innovation around new ways to leverage Bitcoin, including previously launching Coinbase Wrapped Bitcoin which allows users to access popular decentralized finance applications for lending and yield generation
Going deeper:
- Coinbase previously rolled out Bitcoin-backed loans to users before ultimately removing lending from their platform in an effort to deal with ongoing regulatory scrutiny from the United States Securities and Exchange Commission