Coinbase launches borrowing service! With just holding Bitcoin, you can borrow up to $20,000 in cash.

As a well-established exchange founded in 2012, Coinbase has performed exceptionally well this year. With a valuation exceeding $8 billion, it seems to be on the verge of going public. Today, it announced its foray into the lending platform by offering users Bitcoin-backed credit services.

No Credit Score Needed! Borrow Money with Bitcoin

According to an official announcement from Coinbase, in order to provide users with more investment options in the cryptocurrency field, the platform will offer cash loans collateralized by Bitcoin to eligible users in 17 states in the United States.

Users can borrow up to 30% of their total Bitcoin holdings, with a maximum limit of $20,000, at an interest rate of 8% for a period of up to one year. The service is expected to be launched in the third quarter of this year, and eligible users can join the waiting list. Coinbase stated:

We have heard from our customers that some need cash to pay for home improvements, car repairs, and other expenses, but they do not want to sell their cryptocurrency holdings too early. They also prefer to avoid high-interest loans with traditional financial institutions that have annual rates above 20%. Now, through Bitcoin-backed loan services, users can quickly borrow cash from their Coinbase accounts without the need for lengthy applications or credit scores. Simply register, apply, and cash can be deposited within two to three days.

Going Public on the US Stock Market?

Despite the apparent lack of centralized exchange activities this year, Coinbase has been active. In addition to launching the lending feature, Coinbase also added collateral functions for USDC and DAI at the end of July. It has been reported that Coinbase, valued at least $8 billion, is preparing to go public on the US stock market this year.

Louis Lehot, founder of the renowned law firm L2 Counsel, recently made a surprising statement that Coinbase's $8 billion valuation could allow it to go public directly, bypassing the IPO process. Lehot mentioned:

An IPO is intended to raise funds, and direct listing is more suitable for companies like Coinbase with a large amount of cash and continuously increasing valuation. Going public could have a significant impact on the entire cryptocurrency field. In the past few years, there has been a relative lack of certainty in cryptocurrency regulations, so a publicly listed cryptocurrency startup like Coinbase will make other blockchain practitioners compliant and may pave the way for future IPOs, covering a broader customer base.

If Coinbase goes public on the US stock market, it will certainly be a milestone in the cryptocurrency industry. However, in the future of the crypto market, in addition to the large pie of Bitcoin, the fluctuations in Coinbase's stock price will also be highly indicative and may further affect the ups and downs of the cryptocurrency market.