Hassan Maishera
TL;DR
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Coinbase will wind down its lending program over the next few months.
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The cryptocurrency exchange said it would divert the resources to other areas of its operations.
Coinbase Borrow To Shut Down In A Few Months
Coinbase, one of the largest cryptocurrency exchanges in the world, has revealed that it would wind down its lending program over the next few months.
The Coinbase Borrow program allows customers to receive loans of up to $1 million against as much as 30% of their BTC holdings.
The cryptocurrency exchange said it would shut down Coinbase Borrow to focus its resources on other products. A spokesperson of the company told CoinDesk that the focus will be on products that customers care about most.
The cryptocurrency exchange added that customers who hold loans via the Coinbase Borrow program have until November 20, 2023, to pay back any outstanding loan balances. The cryptocurrency exchange stated that;
“We have notified impacted loan holders and are taking extra measures to ensure a smooth transition for them, including providing a four-month loan repayment period and access to prioritized customer support through Coinbase One.”
Coinbase One is the cryptocurrency exchange’s monthly subscription product with multiple benefits for traders.
This latest development comes two months after Coinbase said it was no longer allowing Coinbase Borrow customers to take out new loans.
The cryptocurrency exchange has been locked in a legal battle with the US Securities and Exchange Commission (SEC), for its operations in the United States. For this reason, Coinbase has been expanding its business in other parts of the world.
