Coinbase Boosts Bitcoin Utility with New USDC Loan Services
by aria-crypto.com
January 17, 2025 at 04:39
Coinbase Boosts Bitcoin Utility with New USDC Loan Services
Coinbase has innovated the crypto lending landscape by offering bitcoin-backed USDC loans without the necessity of selling bitcoin, now available to most U.S. customers excluding New York. The feature allows for up to $100,000 borrowing based on bitcoin collateral which is seamlessly converted into Coinbase Wrapped Bitcoin (cbBTC) and transferred onchain via Ethereum and Base networks. Besides the practicality of immediate cash availability, the scheme promotes significant tax benefits by preventing the need to trigger tax events usually associated with asset selling. Borrowers have the flexibility in repayment with no stringent schedules and the capability to secure funds even for substantial expenditures. The progression into using other digital assets as collateral is part of Coinbase’s broader strategy. Through these loans, users can earn over 4% in USDC rewards, convert USDC to USD free of charge, and avoid potential tax implications associated with direct cryptocurrency sales. This initiative by Coinbase underlines a move towards integrating more sophisticated financial tools within the blockchain framework, enhancing user experience and financial accessibility.
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