Starting July 20, 2023, Coinbase began the gradual process of closing Borrow over the following months. Customers with existing loans had until November 20th, 2023 to repay those outstanding loans.
On July 20th, Coinbase announced the gradual process of closing Coinbase Borrow. During this time, customers would be unable to take out new lines of credit against their crypto, and existing Coinbase Borrow customers would have until November 20, 2023 to pay back their existing loans.
Below we’ll review what you can expect over the coming months.
Reason for Borrow closure
We regularly evaluate our products to ensure we’re prioritizing the offerings that our customers care about most. After much consideration, we made the decision to wind down Coinbase Borrow.
Impact on you
Customers who have a line of credit or loan that was due after November 20, 2023 had until November 20, 2023 to repay the outstanding balance.
We have now closed all loans.
If you still have an outstanding loan, a portion of your BTC collateral will be liquidated and that amount will be used to pay off the loan balance.
We recognize the inconvenience this may have caused which is why we provided customers with a four month repayment period along with access to prioritized customer service through Coinbase One. We also waived the typical 2% liquidation fee if you chose to use your BTC collateral to pay back the loan and in situations where we sold your BTC collateral if you took no action.
Additional fees or charges associated with the closure
There were no additional fees. We waived the 2% transaction fee for customers.
Special offers or incentives available for customers affected by the closure
All impacted customers received a promo code for four months of free Coinbase One membership via email associated with their Coinbase account.
The Coinbase One membership comes with zero trading fees, boosted staking rewards, and more. You’ll get free Coinbase One for four months after activating the membership. After the promotional period, your membership will renew at $29.99 per month.
You can cancel your membership prior to the end of the promotional period to avoid being charged.
Receive a refund if you already have prioritized support through Coinbase One
If you’re already a Coinbase One subscriber, you can still redeem the promo code for four free months of the subscription. The four months following redemption of the code will be free. Follow the instructions in your email to redeem your membership.