Coinbase, a leading US cryptocurrency exchange, is letting US customers borrow USDC using their Bitcoin as collateral. This means you can get a loan in USDC without actually selling your Bitcoin.
How it Works
The new program, announced on X (formerly Twitter), allows users to borrow the stablecoin USDC, secured by their Bitcoin holdings. Coinbase says this is a way to access funds without triggering tax implications from selling your Bitcoin.
What You Can Do with the USDC
According to Coinbase, you can use the borrowed USDC in several ways:
- Earn interest: Get over 4% interest on your USDC.
- Send globally: Transfer USDC internationally for free.
- Use onchain: Utilize the USDC within the blockchain ecosystem.
- Convert to USD: Exchange USDC for USD at a 1:1 rate to pay for things like cars or mortgages.
Coinbase’s Onchain Vision
Coinbase says this loan program is part of a larger effort to help people manage their finances using blockchain technology. The company is also planning to expand the program to include more assets and regions in the future. The service is built on Coinbase’s Base blockchain and powered by MorphoLabs.
Coinbase Stock Performance
At the time of writing, Coinbase Global Inc. (COIN) stock is trading at $280, up slightly.
Disclaimer:
This information is for general knowledge only and does not constitute financial advice. Always do your own research before making any investment decisions./p>