Coinbase lending program users have four months to repay loans

Loan holders with outstanding balances must repay by Nov. 20 or risk default and have their bitcoin collateral sold by Coinbase

article-image

sdx15/Sam Salaubie/Shutterstock, modified by Blockworks

share

Coinbase’s users were notified on Thursday that the platform’s lending service is undergoing a gradual wind-down. 

The program, called Coinbase Borrow, earlier permitted customers to secure fiat loans up to $1 million, leveraging up to 40% of their bitcoin holdings, with an annual interest rate of 8.7%.

In May, users were informed about the discontinuation of new loan applications under the program. 

The recent announcement provides further details, specifying that existing loan holders must settle any outstanding loan balances by Nov. 20.

A Coinbase spokesperson told Blockworks that the decision to officially end the program was made “to focus our resources on the products and services that our customers care about most.”

The exchange also cited “low adoption” as the reason for the move, but the precise number of users who utilized the program is unclear.

“We have notified impacted loan holders and are taking extra measures to ensure a smooth transition for them, including providing a four-month loan repayment period and access to prioritized customer support through Coinbase One,” the spokesperson added.

Loan holders who fail to repay their outstanding balances by Nov. 20 will be considered in default, leading Coinbase to sell their bitcoin collateral to settle the loans.

Customers will be able to access their loan history and the Borrow dashboard until May 1, 2024, as per an email sent to users.

In recent months, other aspects of Coinbase’s services have come under scrutiny.

The SEC charged Coinbase in June for operating as an unregistered securities exchange and accused it of failing to register the offer and sales of its cryptoasset staking-as-a-service program. However, Coinbase has not stated that the shutdown of Coinbase Borrow is directly related to the SEC’s actions.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

The convergence of DePIN and energy generation aims to address modern grid challenges by incentivizing distributed generation.

article-image

An improving outlook on tariffs is positive for cryptocurrencies, but a sustained rally is going to take movement on the regulatory front

article-image

Apollo’s Christine Moy explained how the “velocity” of innovation in crypto has led to the evolution of RWAs

article-image

Warren Buffett attributes his astounding investment returns to only about a dozen “truly good decisions” he’s made

article-image

This report has been corrected.

article-image

Stablecoin revenue a bright spot for the crypto exchange in Q1, as trading revenue dropped 19% quarter over quarter

article-image

Creators are being told to “shill” their tokens and cash in on their “cults”