The cryptocurrency exchange Coinbase will wind down its Bitcoin-collateralized lending program Borrow in the coming months. CoinDesk, citing platform representatives, reports.
Retail customers who have loans must repay all debts by November 20. Otherwise the exchange will liquidate the collateral in digital gold itself. The move will not affect institutional clients.
Borrow allowed a fiat loan up to 40% of the Bitcoin value on the account, but not more than $1 million. The annual rate stands at about 8%.
“We have notified affected borrowers and are taking additional measures to ensure a smooth transition, including providing a four-month repayment period and access to priority customer support through Coinbase One,” the company said.
According to exchange representatives, the decision to close Borrow was made to ‘focus resources on products and services that matter most to customers’.
In May, Coinbase ceased issuing Bitcoin-collateralized loans as part of a reassessment of its products.
Earlier, on June 6, SEC filed a civil suit against Coinbase. The agency accused the exchange of offering unregistered securities in the form of a number of tokens.
In July, the trading platform notified clients in California, New Jersey, South Carolina and Wisconsin of the suspension of the staking service amid regulator requirements.