May 4 (Cointime) - Cryptocurrency exchange Coinbase has announced that it will stop issuing new loans through its Coinbase Borrow service, effective May 10, 2023. There is no impact on customers’ outstanding loans, the firm added.

Coinbase Borrow was first introduced in November 2021 as a means to obtain fast fiat loans without having to sell bitcoin, which may result in a taxable gain or loss.

Coinbase Borrow is a service that allows users to obtain loans using their cryptocurrencies as collateral. According to the official website, customers in select US states can use Coinbase Borrow to obtain loans of up to $1 million by using Bitcoin as collateral. They are eligible to borrow up to 40% of their Bitcoin account's value, with an annual interest rate of 8.7%.