Coinbase has reintroduced Bitcoin-backed loans in the United States, allowing users to borrow against their Bitcoin holdings. US account holders, excluding New York residents, can borrow up to $100,000 in USD Coin using their Bitcoin as collateral, with the lending processed on Coinbase's Ethereum layer-2 network, Base. The product reflects Coinbase's commitment to economic freedom, providing users with competitive interest rates without fees or credit checks. Borrowers can repay the loans at their convenience. The initiative follows a previous lending program that was discontinued in November 2023. As Bitcoin’s value has increased, the demand for such loans is expected to grow, with market predictions estimating Bitcoin-backed loans could surge from $8.5 billion in 2024 to $45 billion by 2030. With more financial institutions entering the crypto lending space, this trend highlights the potential for leveraging crypto assets for capital access without selling them.

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