Lending

Coinbase Reintroduces Bitcoin-Backed Loans in the US

Friday. January 17 at 7:00 AM

1 min. read

Cryptocurrency exchange Coinbase has relaunched Bitcoin-backed loans in the US, enabling users to borrow against their digital assets. US account holders, except those in New York, can now borrow up to $100,000 in USD Coin using their Bitcoin holdings as collateral. Only BTC held on Coinbase qualifies for the loan collateral. Coinbase has partnered with Morpho Labs, a decentralized finance protocol, to facilitate the lending process on Base, the exchange's Ethereum layer-2 network. This move reflects Coinbase's dedication to economic freedom, allowing customers to leverage their Bitcoin efficiently. The new product line follows Coinbase's previous Borrow program, which provided cash loans backed by BTC but was discontinued in November 2023. Bitcoin-backed loans offer holders access to capital without selling their assets, appealing to those aiming to preserve wealth and avoid significant tax implications. The market for such loans is expected to grow substantially, reaching $45 billion by 2030, driven by increasing Bitcoin adoption and institutional interest in crypto lending.

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Coinbase Reintroduces Bitcoin-Backed Loans in the US

Friday. January 17 at 7:00 AM

Lending

Legal Battle Between Celsius and FTX

Thursday. January 2 at 7:00 AM

Crypto lending platform Celsius has appealed a judge's decision to dismiss its claims against FTX in a bankruptcy case. Initially seeking $2 billion for alleged disparaging statements, Celsius later focused on preferential transfers, claiming $444 million in damages. Judge Dorsey rejected both claims, citing procedural issues with Celsius' proofs of claim. Celsius filed an appeal against this decision. FTX creditor activist Sunil Kavuri highlighted Celsius' filing tactics, including a $2 billion claim for disparagement and a $444 million preference claim. The court deemed Celsius' amended proofs of claim improper, as they were not related to the original claims and would prejudice FTX's reorganization. Despite repaying $2.53 billion to creditors, Celsius' native token (CEL) has seen a significant drop in value. The legal battle continues as Celsius seeks to recover funds from FTX.

Lending

Celsius Enhances Creditor Returns with $127 Million Payout

Friday. November 29 at 2:00 AM

Celsius, a bankrupt crypto lender, has announced a $127 million payout to creditors, covering 60.4% of total claims. This second round of payments follows an earlier distribution in August, which returned $2.53 billion to 251,000 creditors. Creditors will receive payments in Bitcoin or US dollars based on eligibility, with Bitcoin payouts dependent on market value. Former CEO Alex Mashinsky faces trial in 2025 for fraud charges related to the company's collapse. Additionally, the article discusses rising stablecoin use in countries like Brazil and Nigeria, Coinbase's FOIA efforts, and Vancouver Mayor Ken Sim's belief in Bitcoin as a hedge against inflation. Metaplanet's inclusion in a major blockchain ETF and changes in SOPR and MVRV ratios are also highlighted. Disclaimer: The opinions expressed in the article are those of the writers and not CryptoSlate's. Readers are advised to conduct their own research before engaging in cryptocurrency activities.

Lending

Innovative Use of Bitcoin in Real Estate Financing

Friday. November 22 at 11:00 PM

Newmarket Capital recently completed a groundbreaking loan transaction that merges traditional real estate financing with Bitcoin collateral. This innovative approach, as reported on CNBC's 'Squawk Box,' involves refinancing a multifamily property in Philadelphia with 20 Bitcoin included in the collateral. The fusion of assets aims to enhance lender security compared to conventional real estate-backed loans. The loan, spanning ten years, allows borrowers to repay without penalties, with Bitcoin held in escrow for at least four years. This unique structure benefits pension funds by offering a balanced risk-return profile and potential inflation hedge. The integration of Bitcoin in financial transactions signifies a shift in traditional finance's perception of cryptocurrencies. Additionally, major U.S. crypto companies are seeking advisory roles in shaping crypto policies. Despite market warnings and currency fluctuations, the use of Bitcoin in lending practices showcases its growing acceptance and potential impact on future financial transactions.

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