According to an announcement on Coinbase’s website, the cryptocurrency exchange is asking borrowers to pay off balances on loans taken out in the next four months. After Nov. 20, all customer accounts with outstanding loans will be repaid by selling cryptocurrency collateral to cover the full amount owed.
In the event of forced liquidation, the exchange reserves the right to charge a 2% transaction fee for borrowers who fail to repay loans by the deadline.
“We regularly evaluate our products to make sure: we prioritize the offerings that our customers are most interested in. After much consideration, we have made the decision to wind down Coinbase Borrow,” the crypto exchange said in an official statement.
The closure of Coinbase Borrow was first talked about
two months ago. In early May, the exchange announced that May 10 would be the last day for customers to receive loans under the program.
As a reminder, cryptocurrency exchange Coinbase has positioned the Coinbase Borrow program as an easy way for affluent crypto investors to access cash without selling their cryptocurrency holdings.
Earlier, Coinbase, the largest U.S. cryptocurrency exchange, said it had
about suspending its stealth services in California, New Jersey, South Carolina and Wisconsin.