In an announcement made 4/11/2021, Coinbase said its customers would be able to receive up to 40% of their wallet value with bitcoin acting as collateral. They now allows users to borrow up to 40 per cent of the crypto value in their account, up to $1,000,000, and to access the money using either their PayPal account or bank account without incurring any transaction fees.
There is a $10 minimum MI payment required, and Coinbase offers flexible repayment systems. Coinbase said the loans would have an annual return rate of 8% and borrowers wouldn’t need to provide credit checks.
Coinbase will securely hold your Bitcoin collateral. According to Coinbase, the funds will not be invested or used for other business purpose. Although state-specific borrowing limits may apply, Coinbase said.
Coinbase made its announcement a while after the SEC said it would sue them if it went forward and launched the program which let users earn interest by borrowing crypto assets.
In June, Coinbase announced its plans to discontinue its crypto lending services. In this program, users would have been provided with a high-end alternative to standard savings accounts, and they will earn a 4% annual interest on their city coin, which is always redeemable for USD one-on-one.
High-yield savings accounts still fall well short of the 1% mark, Coinbase said, with the national average for traditional savings accounts around 0.07 per cent.
Coinbase Future Intentions
Our mission is to ensure economic freedom around the world increases by creating great products for our customers. Our efforts to get regulatory clarity as a whole from the crypto sector have led us to make a hard decision in not launching the USDC APY program,” announced the crypto exchange in June.
Our waitlist for the program has also been discontinued as our focus now shifts to the next phase of the program. Thanks to your interest, we have had lots of customers sign up from different parts of the country. It is our commitment to provide innovative, trustworthy products and programs to our customers nonstop.”
Despite cancelling this program, Coinbase has not stopped expanding its other products, including the NFT marketplace which has over two million people already on the waiting list. This move follows a recent drop in Coinbase value as one of their major investors withdraws some of their investment.
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Catie Wood trims Coinbase stake by $49.4M more
Ark Invest, Catie Wood’s money managment firm, cut its exposure fromCoinbase Global Inc further but added more shares to Square Inc, days after Square dropped its old name. According to the latest closing price, Ark Invest sold 173,387 shares for $49.36 million in Coinbase. In Thursday’s closing prices, Coinbase shares fell 3.32% to $284.71 a share. During the past month, it has plunged 17.33% further.
At the company’s quarterly earnings call three weeks ago, CEO Brian Armstrong told investors that the company’s focus is on long-term growth rather than period to period investment strategy. Following Coinbase’s direct listing on NASDAQ in April this year, Ark Invest has been rducing its exposure, after gatheringshares on the U.S. stock Exchange.
According to the company, Bitcoin represented 19 per cent of trading volume in the third quarter, down from 24 per cent in the second quarter. Compared to the second quarter where Ethereum was trading at 26%, right now Ethereum accounts for 24% of the trading volume.
The COIN shares were sold by Ark Invest through its Ark Innovation ETF. Thy also reported to owning shares through the Ark Next Generation Internet ETF and the Ark Fintech Innovation ETF ARKF.
Bottom Line
Coinbase is looking to spread its reach into other services most especially as investors are pulling out their stocks and they’re getting fined by the US SEC. We should brace up to see the line of services Coinbase launch in the nearest future.
GAG Staff