In one of its latest blog posts published on August 13, Coinbase confirmed that users in select states within America have been invited to sign up for a waiting list in order to borrow up to 30 percent of their Bitcoin holdings.
Users in 17 different states can now sign up for the soon to be launched debt facility, including Alaska, Arkansas, Connecticut, Florida, Georgia, Illinois, Massachusetts, New Hampshire, New Jersey, North Carolina, Oregon, Texas, Virginia, Nebraska, Utah, Wisconsin, and Wyoming.
Accessing finance without selling crypto holdings
As the blog post outlines, Coinbase has received requests from users for some sort of a credit facility to pay for unforeseen or unaccounted-for expenses.
The US based cryptocurrency exchange will soon be offering the service that gives users quick access to fiat currency through their Coinbase accounts. Users will not have to fill in documentation or submit information for a credit check – they simply make the application through their Coinbase account.
Cash will then be deposited into their accounts within two to three days.
The facility intends to provide users with the added benefit of not having to sell their cryptocurrency holdings for cash, which would then be liable to taxable gains or losses.
Coinbase will allow users to borrow up to 30 percent of their Bitcoin holdings on the exchange, with a cap on the credit facility at $20000.
The exchange is also touting an 8 percent Annual percentage interest rate for their upcoming loan facility. Users have a full year to repay the borrowed amount and only have to repay interest on a monthly basis.
Coinbase is currently listed as the third biggest cryptocurrency exchange by volume on Coinmarketcap. It’s daily trading volume is just above $800 mln, while those figures are eclipsed by second placed Huobi and market leaders Binance.
According to the Coinbase website, it now has over 35 million users on its platform from over 100 countries around the world.
The company met praise from the cryptocurrency community earlier this month for launching ‘Human-Readable wallets. These wallets replace alpha-numeric wallet addresses with name-based, domain-like addresses like Dailychain.wallet, for example.