Coinbase unveiled a new feature yesterday that allows customers to borrow up to $1 million in cash from their Bitcoin wallet.
See: Coinbase expands banking services by letting users deposit paychecks into their accounts
Find: Coinbase Fees: Here’s a Full Breakdown of How to Minimize Costs
“Big news for all #BTC… We’re excited to announce that eligible customers can now borrow up to US$1 million from Coinbase,” the company tweeted.
“Have you ever needed money for something urgent, like medical bills or car repairs? In the past, you may have sold Bitcoin to cover it and incurred a taxable gain or loss Now you don’t have to,” the company says on its website.
The new feature has no fees or credit checks, “just a low APR [annual percentage rate] 8%, according to its website. Borrowed money can be instantly added to PayPal or transferred via ACH to your bank account.
Customers can borrow up to 40% of the Bitcoin value in their account, up to $1,000,000.
“Each month, you only have to pay the interest due ($10 min). Pay the balance when you’re ready. The bitcoin you use as collateral remains securely held by Coinbase. It is not lent or used for any other purpose,” according to the website.
“Congratulations. One small step for Coinbase, one giant leap for #Bitcoin,” tweeted Microstrategy co-founder Michael Saylor. “Now you never have to sell your Bitcoin again.”
Coinbase will also offer term loans, currently only available to Coinbase customers in Connecticut. These will allow customers to borrow up to 30% of the value of Bitcoin in cash, up to $100,000. They have an 8% APR with no credit check.
See: Bank bets big on crypto, backs lending with Ethereum: ‘Bitcoin will always be gold, Ethereum will always be silver’
Find: Crypto Understanding Study: 98% of People Don’t Understand the Basics of Bitcoin, Stablecoins, or NFTs
The crypto platform has diversified its offerings at a rapid pace. More recently, it announced that it would launch an NFT marketplace in late 2021. Its waitlist hit 1 million signups in 24 hours, as GOBankingRates previously reported.
More from GOBankingRates