Coinbase is a big and popular cryptocurrency trading exchange platform. This is based on USA and its the only exchange that is a public listed company. The exchange is well known for its products offering and it's coin listing is also not so easy.
The coinbase exchange has launched bitcoin backed loan for customers in United States and users can avail a loan of up to 100k USDC. This is started in collaboration with a company called Morpho. Coinbase was offering this before but it was paused however now it's available again but only for the US customers.
Users can borrow up to $100,000 in USDC according to their Bitcoin holdings. When users borrow, their Bitcoin is converted into Coinbase Wrapped Bitcoin (cbBTC) at a 1:1 ratio and held as collateral on Morpho.
This is only available with Bitcoin backing and there is a limit of 100k usdc. Once a user borrow, the Bitcoin will be converted to cbBTC Coinbase Wrapped Bitcoin. It will be kept as collateral and morpho will be taking care of that part and this conversion will be done in 1:1 ratio.
This is a good service and can be helpful for many who would use it when they need funds but they don't want to sell their bitcoin. Apparently this limit or 1 bitcoin as of now if look at the current price of bitcoin in market.
We are in bull market and this can help people book good profits on Bitcoin if they hold and sell at right time but sometimes because of the funds requirement it can be tough to hold but not anymore because now users have option to avail loan against the Bitcoin holding.
Posted Using INLEO