Coinbase is being rolled out BitcoinSponsored Loans Nearly two years after it stopped servicing borrowing, just as the world's oldest cryptocurrency soars to new heights.

Customers can borrow up to $100,000 US dollars Stablecoin instantly through the company's central exchange, Coinbase He said Thursday in a statement. The lending services will be powered by Morpho, a popular lending protocol a basethe Ethereum Layer 2 network incubated by Coinbase.

A Coinbase representative said the loans will be collateralized for 133% of their value Decryption. Interest rates are variable and are automatically calculated by Morpho, depending on changing market conditions. Repayment schedules will not have any cap or deadline as long as customers maintain a good loan-to-value ratio.

Coinbase first launched Bitcoin-collateralized loans in November 2021, but... It has been discontinued In May 2023 amidst a downturn in the cryptocurrency market – and only a few weeks after the trading company became aware of it May face enforcement action By the SEC. It also came around the same time as Coinbase Her current legal battle has intensified Against federal regulatory agencies.

Coinbase attributed the decision to discontinue its lending service at that time to changing customer demands. The reintroduction of Bitcoin-based loans comes shortly after the digital currency reached a new all-time high price More than $108,000.

The value of the token remained high on a wave of bullish news after Donald Trump's election win: a number of lawmakers are trading Bitcoin reserve proposals At the state level, while reports emerged earlier this week that the SEC could Temporarily halting enforcement actions against digital asset companies And other cryptocurrency-friendly changes will be made under the incoming President-elect Trump administration.

Bitcoin is trading at $100,500 at the time of writing, CoinGecko Data He appears.

Bitcoin-backed loans will be available to traders across the United States, except New York, according to Coinbase. The trading platform plans to expand Bitcoin-collateralized loans to other markets in the future, as well as launch other lending options backed by cryptocurrencies.

Modified by Andrew Hayward