Coinbase Bitcoin Loan Service Now Supports US Users Again

Key Points:

  • Coinbase now allows U.S. users (excluding New York) to borrow against Bitcoin, partnering with DeFi protocol Morpho for the service.
  • Unlike past programs, the Coinbase Bitcoin loan service will be supported by third parties, and the exchange will only act as an intermediary.
Coinbase Bitcoin Loan Service Now Supports US Users Again
According to DLNews, Coinbase has restored crypto-backed loans, which allow users to borrow against their Bitcoin directly through the platform.

Read more: Coinbase SEC Lawsuit Will Continue With Successful Appeal 

Coinbase Bitcoin Loan Service Reopens for US Users

The Coinbase Bitcoin loan service is available for U.S. customers but with the exception of residents in New York, while it studies the possibility of more extensive access in the future.

Unlike previous programs, Coinbase isn’t making the loans directly. Instead, the exchange provides a front-end to connect users with Morpho, a DeFi lending protocol that oversees $3.7 billion in deposits.

Rebuilding Trust in Crypto Lending After the 2022 Crisis

The reboot of the Coinbase Bitcoin loan service comes after its earlier lending program had allowed customers to lend up to $1 million against 30% of their Bitcoin holdings.

The program came to a close in July 2023 after the Securities and Exchange Commission accused Coinbase of acting as an unregistered broker, exchange, and clearing agency.

Crypto lending has been under scrutiny since past scandals. During the “crypto winter” in 2022, the bankruptcy filings of firms such as Celsius, Genesis, and BlockFi wiped out billions of dollars of investor value and shook market confidence. Coinbase, however, claimed that its new product fixed many of those issues by using DeFi infrastructure.

4.7/5 - (416 votes)