Welcome DT News

  • CONTACT
  • ABOUT US
Deythere
  • Home
  • News
    image 446
    NewsCryptoMarketSponsored Article

    Pepe Price Prediction: Can It Hit $0.000018 in 2025? MoonBull Whitelist Could Be the New Meme Coin Jackpot – Join Now

    The crypto world never sleeps, and meme coins have been the life…

    By
    Benedikt Krüger
    September 18, 2025
    CME to Launch Solana and XRP Options in October Pending Approval
    NewsCryptoMarket
    CME to Launch Solana and XRP Options in October Pending Approval
    September 18, 2025
    Brian Armstrong Confident U.S. Crypto Bill Will Pass by Year-End
    NewsCryptoMarket
    Brian Armstrong Confident U.S. Crypto Bill Will Pass by Year-End
    September 18, 2025
    Ethereum Local Bottom? Binance Open Interest Drop Signals Reset Ahead
    MarketCryptoEthereumNews
    Ethereum Local Bottom? Binance Open Interest Drop Signals Reset Ahead
    September 18, 2025
    SEC Approves New Crypto ETF Rules Backing Nasdaq, Cboe, and NYSE
    NewsCryptoMarket
    SEC Approves New Crypto ETF Rules Backing Nasdaq, Cboe, and NYSE
    September 18, 2025
  • Cryptocurrency
    image 446
    Pepe Price Prediction: Can It Hit $0.000018 in 2025? MoonBull Whitelist Could Be the New Meme Coin Jackpot – Join Now
    12 Min Read
    CME to Launch Solana and XRP Options in October Pending Approval
    CME to Launch Solana and XRP Options in October Pending Approval
    7 Min Read
    Brian Armstrong Confident U.S. Crypto Bill Will Pass by Year-End
    Brian Armstrong Confident U.S. Crypto Bill Will Pass by Year-End
    8 Min Read
    Ethereum Local Bottom? Binance Open Interest Drop Signals Reset Ahead
    Ethereum Local Bottom? Binance Open Interest Drop Signals Reset Ahead
    7 Min Read
    SEC Approves New Crypto ETF Rules Backing Nasdaq, Cboe, and NYSE
    SEC Approves New Crypto ETF Rules Backing Nasdaq, Cboe, and NYSE
    8 Min Read
    Ethereum Staking
    Vitalik Defends Ethereum Staking Queue Amid Growing Concerns
    6 Min Read
    Previous Next
  • Pages
    • Contact Us
    • Customize Interests
    • My Bookmarks
Reading: Coinbase Unveils Bitcoin-Backed Loans: Everything You Need to Know
Share

[ccpw id=”7831″]

DeythereDeythere
Font ResizerAa
  • Home
  • Crypto
  • Market
  • News
  • Blockchain
  • Contact
Search
  • Home
  • News
  • Cryptocurrency
  • Pages
    • Contact Us
    • Customize Interests
    • My Bookmarks
Have an existing account? Sign In
Follow US
© DT News. All Rights Reserved.
Deythere > News > News > Coinbase > Coinbase Unveils Bitcoin-Backed Loans: Everything You Need to Know
CryptoCoinbaseNews

Coinbase Unveils Bitcoin-Backed Loans: Everything You Need to Know

Coinbase Unveils Bitcoin-Backed Loans: Everything You Need to Know
Jonathan Swift
Last updated: January 17, 2025 8:11 am
By
Jonathan Swift
Published January 17, 2025
5 Min Read
Share

Coinbase has reintroduced its loan service, permitting Bitcoin patrons access to finances without relinquishing their cryptographic investments. This fresh offering enables clients throughout the United States – minus New York – swift access to as much as $100,000 in USD Coin without parting with their stash of bitcoin, providing adaptable reimbursement conditions and possible tax rewards.

Contents
  • A New Era of Crypto Lending
  • Integration with Morpho Protocol
  • Flexible Repayment and Tax Advantages
  • Expanding Horizons of Coinbase
  • Summing UP
  • FAQs about Coinbase’s Bitcoin-Backed Loans

The loans are facilitated via Morpho, a decentralized non-custodial protocol functioning on Ethereum and Coinbase’s additional layer blockchain Base, using complex smart contracts to monitor transactions with variability in sentence constructions.

A New Era of Crypto Lending

Coinbase’s innovative move marks a pivotal shift in the crypto lending sphere. By empowering users to leverage their Bitcoin assets without relinquishing ownership, the platform addresses a prevalent unease among cryptocurrency investors: the reluctance to liquidate holdings due to potential tax implications and the desire to retain long-term investment positions.

The spokesman commented, “Within sixty seconds, you can procure a loan in USDC while continuing to possess your Bitcoin.”

This streamlined process furnishes users with expedited access to liquidity while preserving their investment portfolio intact.

Coinbase Unveils Bitcoin-Backed Loans: Everything You Need to Know

Integration with Morpho Protocol

The partnership with Morpho integrates a decentralized finance (DeFi) facet into Coinbase’s offerings. Morpho functions as a permissionless, non-custodial lending protocol across Ethereum and Base, engineered to boost scalability and efficiency for decentralized applications. By incorporating Morpho, Coinbase ensures that the loan practice is both secure and optimized. Users’ Bitcoin collateral is transformed into Coinbase Wrapped Bitcoin (cbBTC) and transported on the blockchain to Morpho, facilitating a seamless lending experience.

Flexible Repayment and Tax Advantages

One of the most notable provisions of this lending product is its flexible repayment structure. Unlike conventional loans that mandate rigid installment schedules, borrowers utilizing this option can pay down the balance at their own leisure. However, it is imperative to note that if the collateral value plunges below a predefined floor in relation to the remaining debt, liquidation of the assets may be enforced to cover what is still owed.

Furthermore, by taking a loan against Bitcoin instead of selling, clients can potentially postpone impending tax liabilities tied to capital appreciation. Coinbase underscored this perk, eloquently stating

“Securing financing against Bitcoin in lieu of disposing of it helps to temporally kick the can of a taxable profit or loss down the road.”

Coinbase Unveils Bitcoin-Backed Loans: Everything You Need to Know

Expanding Horizons of Coinbase

While initially concentrating on Bitcoin as collateral, Coinbase envisions broadening the scope of this service to encompass additional cryptocurrencies and worldwide markets in time.

“We are starting with Bitcoin as collateral, with plans to add more digital assets and locations down the road,” the company stated.

This strategic maneuver echoes Coinbase’s dedication to delivering multifaceted monetary solutions customized to the changing necessities of its global clientele.

Summing UP

Coinbase’s reintroduction of Bitcoin-backed loans marks productive progress towards interweaving conventional financing with the burgeoning realm of decentralized finance. By offering a service combining adaptability, tax efficiency, and instant access to capital, Coinbase is establishing novel standards for cryptocurrency utilization. As the platform strategizes to expand its offerings, users can foresee a more diverse assortment of monetary products catering to the dynamic landscape of digital assets and the needs of a worldwide user base seeking innovative alternatives.

FAQs about Coinbase’s Bitcoin-Backed Loans

1. How much can I borrow with Coinbase’s Bitcoin-backed loans?

You can access up to $100,000 in stablecoin financing depending on the bitcoin reserves you pledge as collateral.

2. Do I have to sell my Bitcoin to get a loan?

No, your Bitcoin is used solely as a security deposit, so you retain possession while borrowing against the value.

3. Are there fixed repayment terms for the loan?

Repayment is adaptable, but defaults could arise if the collateral value plunges below maintenance levels.

4. Is this service available everywhere?

At present, it is established in the USA, excluding New York, with aims to broaden offerings to other regions and supported assets.

Advertising

For advertising inquiries, please email . [email protected] or Telegram

How Will the U.S. Election Impact the Crypto Market?

‘We’re Talking to China,’ Says Trump — Markets Brace for What’s Next

Why Trump’s Tariffs Caused a $500 Million Crypto Sell-Off

U.S. Bitcoin Strategic Reserve Bill Moves Forward as Congress Meets Industry Leaders

Massive Liquidation Risk! Where Is Bitcoin Headed? Key Price Levels to Watch

TAGGED:BitcoinCoinbase

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Email Copy Link Print
ByJonathan Swift
Follow:
A crypto journalist with an understanding of blockchain technology. Skilled in simplifying complex topics for diverse audiences, from beginners to experts. Because I believe in words as they are the children of mind.
Previous Article Bitcoin’s Next Growth Wave: Analyst Predicts Possible $120k Surge Bitcoin’s Next Growth Wave: Analyst Predicts Possible $120k Surge
Next Article XRP Price Prediction for Today: Is $5 Within Reach?   XRP Price Prediction for Today: Is $5 Within Reach?  
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Subscribe to our newslettern

Get Newest Articles Instantly!

Popular News
crypto 2024
Crypto Derivatives Market Heats Up as Innovative Products Emerge
crypto approval
Blockchain Revolutionizes Energy Markets with Decentralized Trading Platforms
crypto news
Cutting-Edge Mining Technologies Drive Efficiency in Cryptocurrency Production
crypto 2024 1200x720
Decentralized Identity Emerges as a Catalyst for Data Privacy Renaissance
space
Tech Giant Announces Breakthrough in Quantum Computing
worldwide protest
Worldwide Protests Demand Action on Climate Change
global
Global Economic Forecast Reveals Slow Recovery Post-Pandemic
solar power
Revolutionary Solar Power Technology Unveiled

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Youtube Telegram Linkedin
Deythere

DT News influence 20 million users and is the number one business blockchain and crypto news network on the planet.

Subscribe to our newsletter

You can be the first to find out the latest news and tips about trading, markets...

Menu

  • Home
  • News
© DT News. All Rights Reserved.
Banner 1
Banner 2
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?

  • English