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Coinbase Borrow, a program that enabled customers to obtain fiat loans of up to $1 million by leveraging as much as 30% of their bitcoin (BTC) holdings, will gradually cease its operations in the upcoming months. The decision comes as the company reallocates its resources towards the products that are most relevant and essential to its customers, according to a statement provided to CoinDesk on Thursday.
Customers participating in the program are granted an extended period until November 20, 2023, to settle any remaining loan amounts.
“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,” according to a statement sent to CoinDesk. Coinbase One is a monthly subscription product with multiple benefits for traders.
In May, Coinbase made an announcement stating that it had discontinued the option for Coinbase Borrow customers to apply for new loans. This decision was part of their routine product re-evaluation process.
The California-based exchange has faced growing scrutiny from U.S. regulators, particularly the Securities and Exchange Commission (SEC), due to its activities within the United States. Consequently, the exchange has been intensifying its focus on expanding its operations in other regions.
Back in May, Coinbase's spokesperson revealed that the discontinuation of Coinbase Borrow stemmed from a waning interest and subsequent reduction in demand.
Source Coindesk
