Coinbase announced Thursday that its Coinbase Borrow program, which allowed customers to receive fiat loans of up to $1 million against as much as 30% of their Bitcoin (BTC) holdings, will be shutting down over the coming months. A spokesperson said the company is focusing its resources on products that customers care about most.
Customers who hold loans through the program will have until November 20, 2023 to pay back any outstanding loan balances. Coinbase is taking extra measures to ensure a smooth transition for impacted loan holders, including providing a four-month loan repayment period and access to prioritized customer support through Coinbase One, a monthly subscription product with multiple benefits for traders.
Coinbase had previously announced in May that it was no longer allowing Coinbase Borrow customers to take out new loans as part of a regular process of re-evaluating its products. At the time, a spokesperson said the shutdown of Coinbase Borrow was simply due to reduced demand.