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U.S. crypto exchange Coinbase will start offering bitcoin-backed cash loans to select customers as early as next month. Investors can borrow up to 30% of the bitcoin they hold on the exchange, or a maximum $20,000, it said.<\/strong><\/p>\n In a blog post<\/a> on August 13, Coinbase unveiled its new crypto lending business, which places it into competition with the likes of Nexo and Blockfi. The service charges an annualized interest rate of 8% for borrows that are one year or less.<\/p>\n Coinbase said interested customers can get cash in their accounts in two to three days with just a few taps. It intends that the lending process becomes as less cumbersome as possible, so application procedures have been shortened and issues like credit check eliminated.<\/p>\n Intially, the service will be available only in 17 select U.S. states. These are: Alaska, Arkansas, Connecticut, Florida, Georgia, Illinois, Massachusetts, New Hampshire, New Jersey, North Carolina, Oregon, Texas, Virginia, Nebraska, Utah, Wisconsin, and Wyoming.<\/p>\n The exchange, which boasts more than 35 million users worldwide, is working to obtain licenses to add more cryptocurrencies as well as to expand to the outstanding jurisdictions, it said.<\/p>\n “We want to give our customers even more control over their crypto investments while offering secure access to cash at the same time,” Coinbase stated, in the post.<\/p>\n “We hear from customers that they need cash for expenses like home renovations or car repairs, but they do not want to prematurely sell their crypto, or take out high-interest loans…” it added.<\/p>\n A number of companies seem interested in joining the crypto lending business. Square’s Cash App, a crypto-friendly peer-to-peer payments platform, announced<\/a> that it is testing a lending product that will give users short-term loans of between $20 and $200. Interest rates will be a flat 5% per month.<\/p>\n What do you think about Coinbase’s new bitcoin lending business? Let us know in the comments section below.<\/strong><\/em><\/p>\n The post Coinbase to Offer Bitcoin-Based Cash Loans of up to $20,000 Across 17 US States<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n