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

Decoding crypto and the markets. Daily, with Byron Gilliam.

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.

recent research

Research Report Templates.jpg

Research

Figure, founded by former SoFi CEO Mike Cagney, has emerged as a leader in onchain RWAs, with ~$17.5B publicly tokenized. The platform’s ecosystem volume is growing ~40% YoY as it expands beyond HELOCs into student loans, DSCR loans, unsecured loans, bankruptcy claims, and more. Operationally, Figure cuts average loan production cost by ~93% and compresses median funding time from ~42 days to ~10, creating a durable speed-and-cost advantage.

article-image

Former White House crypto official Bo Hines is expected to be the CEO of the new project

article-image

In bonds, stablecoins and billionaires, a reminder of what makes crypto special

article-image

21Shares exec says CPI and PPI data supports a Fed rate cut, with market leaning toward a 25bps decrease

article-image

The Ethereum co-founder suggested LINEA holders would be eligible for other airdrops in cryptic tweet

article-image

The layer-2’s biggest release yet brings benefits — but a post-upgrade outage caused a chain reorg

article-image

Crypto is shifting into risk-on mode — pump.fun dominates meme activity, while Lido leans on treasury maneuvers