BLOCKFI REVIEW For Beginners | My Friend’s 27 K USD Blockfi Interest Account | Blockfi Crypto Loan

Contents

Coinbase will compete for the crypto loan market with BlockFi
CONTENT

  • In the future, the company plans to expand the geography of the service

  • Coinbase loan terms differ from competitors

  • At the first stage, loans will be issued secured by bitcoins

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The popular digital asset exchange Coinbase will begin issuing fiat loans secured by Bitcoin (BTC) collateral. Information about this appeared in the company’s blog.

According to The Block, the project will launch in the fall. In the first phase, Coinbase plans to provide services in 17 states of America, including Alaska, Nebraska, Utah, Wyoming, Texas and others..

Coinbase will compete for the crypto loan market with BlockFi

In the future, representatives of the initiative want to expand the geography of the project.

Coinbase will compete for the crypto loan market with BlockFi

The Coinbase team also drew attention to the fact that in the future, users of the service will be able to receive fiat loans secured by other cryptocurrencies..

Coinbase will compete for the crypto loan market with BlockFi

The platform team is currently exploring the possibilities of expanding the project.

The company plans to issue loans in the amount of up to 30% of the user’s savings in bitcoin, but not more than $ 20 thousand.It turns out that if the user has 5 BTC, he can receive a fiat loan, which will be equivalent to 1.5 BTC ($ 17 374 at the current exchange rate).

Coinbase will compete for the crypto loan market with BlockFi

The maximum period for issuing a loan is one year.

Coinbase Loan Service Interface

According to representatives of the initiative, those who wish will be able to receive a loan within 2-3 days. At the same time, users do not need to fill out long forms to submit an application..

All clients have an interest rate of 8% per annum for the entire term of the loan. At the same time, according to a Coinbase spokesman, the company may revise the terms of the loan. Among the factors that may affect the update of the conditions, the project team included changes in market conditions..

What competitors have?

With the entry into the crypto loan market, Coinbase will have to compete with other successful projects that have been working in this direction for a long period of time..

Let’s compare the company’s loan service with the offers of its closest competitor – BlockFi. The conditions for issuing loans to the latter differ, depending on the level of potential risk of clients. The minimum rate is 4.5% per annum. At the same time, the average value is 9.70% for a loan with collateral in bitcoins, with a total amount of $ 20,000. The size of the cryptocurrency collateral in BlockFi varies from 35% to 50%. Unlike Coinbase, the company supports Ethereum (ETH) and Litecoin (LTC).

Read also: Coinbase refused to issue to clients bitcoin hard fork tokens

We will remind, recently the company Coinbase, which is used by over 35 million people, sold US regulators tools for tracking blockchain transactions..

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