Coinbase’s Bitcoin-Backed Loans Surpass $1B as Exchange Prepares to Lift Borrowing Cap

Coinbase has reported that its bitcoin-backed loan program has surpassed $1 billion in originations since its launch in January. This trend highlights the increasing demand for cryptocurrency as collateral for loans. The exchange currently allows retail customers in the U.S. to borrow cash against their holdings through the Morpho platform, with an average loan size around $54,000. In response to growing interest, Coinbase plans to increase its borrowing cap from $1 million to $5 million within the next few weeks. The asset-based lending market is projected to grow to $1.3 trillion by 2030, indicating a robust future for crypto-related financial products. Users have been actively borrowing against the current limit, reflecting a rising trend in utilizing digital assets as part of their financial strategies.

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