Coinbase Halts Issuance Of New Loans Via Coinbase Borrow

Twitter icon  •  Published hace 10 meses  •  Hassan Maishera

Crypto exchange Coinbase will halt the issuance of new loans on Coinbase Borrow starting from May 10th.

TL;DR

  • Cryptocurrency exchange Coinbase is halting the issuance of new loans on its Coinbase Borrow platform.

  • Coinbase has been under scrutiny from the US SEC in recent months.

Coinbase To Stop Issuing New Loans Visa Coinbase Borrow

Cryptocurrency exchange Coinbase has revealed that it would stop issuing new loans via its Coinbase Borrow platform. 

According to the company, May 10 is the final day customers will be allowed to take out new loans via the platform. 

The Coinbase Borrow platform allowed customers to borrow fiat loans up to $1 million against 30% of their Bitcoin holdings with interest. Customers received an email on Wednesday informing them that they can no longer access new loans from May 10th. 

This latest development comes as Coinbase has been facing scrutiny from the Securities and Exchange Commission (SEC) in recent months over alleged violations.  

Despite that, the closure of Coinbase Borrow is unrelated to any regulatory action at the moment. A source close to the matter told CoinDesk that the closure of the platform is not related to pending or past troubles with the SEC.

Coinbase’s spokesperson revealed that the crypto exchange is shutting down Coinbase Borrow due to reduced demand. The spokesperson said;

“We regularly evaluate our products to ensure we’re prioritizing the offerings that our customers care about most. Effective May 10, we will stop issuing new loans through Coinbase Borrow. There is no impact on customers’ outstanding loans, and no action is required from them at this time.”

Coinbase Borrow has been around since November 2021 and was designed to enable customers to gain access to fiat loans quickly without liquidating their bitcoins.

 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.