Coinbase has reintroduced Bitcoin-backed loans in the United States, offering users the ability to borrow against their digital assets holdings.
Return of Bitcoin-Backed Loans
Coinbase allows US account holders, except New York residents, to borrow up to $100,000 using their Bitcoin holdings as collateral. Only Bitcoin held on Coinbase qualifies for the loan, facilitated by Morpho Labs' DeFi protocol.
Benefits of Loans Without Selling Assets
Bitcoin-backed loans enable holders to access capital without selling their assets, avoiding substantial tax bills—a crucial feature for wealth maintenance.
Rising Interest in Bitcoin-Backed Loans
According to HFT Market Intelligence, the market value of Bitcoin-backed loans could rise from $8.5 billion in 2024 to $45 billion by 2030. More financial institutions are entering the crypto lending market.
The reintroduction of Coinbase's Bitcoin-backed loans indicates growing interest in cryptocurrency lending from both users and financial institutions.
