Summary
- Reported that Coinbase's Bitcoin (BTC) collateralized loan amount has surpassed $1 billion.
- Coinbase said it plans to raise the loan limit from $1,000,000 to $5,000,000.
- It said it expects that this limit increase will expand the use of BTC-based financial services by more institutional and individual investors.
On the 30th (local time), according to CoinDesk, a media outlet specializing in virtual assets (cryptocurrencies), the Bitcoin (BTC) collateralized loan amount at global virtual asset exchange Coinbase has exceeded $1 billion. This indicates that demand for Coinbase's BTC-collateralized loan service has increased significantly.
Coinbase plans to raise the loan limit from $1,000,000 to $5,000,000. This decision is interpreted as part of a strategy to expand the lending market targeting institutional investors and high-net-worth asset holders.
Earlier this January, Coinbase officially launched its BTC collateralized loan service in collaboration with the DeFi lending protocol Morpho (MORPHO). The service is structured so that cash can be borrowed against BTC as collateral, playing a role in providing liquidity to virtual asset investors.
Coinbase expects that raising the loan limit will allow more institutional and individual investors to access financial services using BTC.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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