Cryptocurrency exchange Coinbase plans to enter the crypto lending market.
Coinbase customers in some US states will be able to obtain fiat using BTC as collateral. At launch, Coinbase plans to support 17 states.
A Coinbase spokesperson told the lending service is going to launch in the fall. Coinbase proposes to add more crypto assets in the future. “We are also actively working to obtain licenses in other states,” he continued.
Coinbase will lend 30% of all client bitcoins with a limit of up to $ 20,000. The exchange will charge a flat annual rate of 8% for a maximum payout period of one year.
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“All clients are scheduled to offer 8% for the entire loan term,” as it was reported. Moreover, Coinbase may revise the rate in the future to reflect market conditions.
By comparison, the interest rates on the BlockFi lending service vary depending on the client's risk profile and start at 4.5% per annum.
Coinbase said its customers are not going to be required to fill out dull application forms or go through a credit control - they will be able to get the money within 2-3 days.