Cryptocurrency exchange Coinbase has reintroduced Bitcoin-backed loans in the United States, allowing users to borrow against their Bitcoin holdings. U.S. account holders, excluding New York residents, can borrow up to $100,000 in USD Coin by using Bitcoin as collateral. The lending process will occur on Base, Coinbase's Ethereum layer-2 network, with no Coinbase fees or credit checks required. The new offering marks Coinbase's second attempt in the Bitcoin lending market after a previous program that ended in November 2023. These loans are seen as a vital option for individuals wanting to access capital while maintaining their Bitcoin investments, a practice known as 'borrow, borrow, die,' which enables wealthy households to leverage assets without liquidating them. As Bitcoin's value rises, the market for Bitcoin-backed loans is projected to increase significantly, with estimates suggesting it could grow from $8.5 billion in 2024 to $45 billion by 2030.

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