In a recent announcement, cryptocurrency exchange Coinbase announced that it will discontinue its lending platform Coinbase Borrow in the coming months.
The decision was made because the company aims to divert its resources to products that better align with customer preferences and demands, a company spokesperson said on Thursday.
Coinbase Borrow, a program that allows customers to obtain up to $1 million in nominal loans for 30% of their Bitcoin (BTC) holdings, was part of the exchange's suite of services that catered to the crypto community.
Existing customers using loans through the Coinbase Borrow platform will have until November 20, 2023, to repay their outstanding loan balances.
To facilitate this transition and provide additional support, the exchange will implement a four-month loan repayment period for affected customers. Additionally, these users will have access to priority customer support through Coinbase One, a monthly subscription service that offers many benefits for traders on the platform.
The decision to discontinue Coinbase Borrow follows the company's previous announcement in May that new loan requests will no longer be accepted. At the time, this move was attributed to reduced demand for the lending service.
*Not investment advice.
