On July 20th, Coinbase announced that we will begin the gradual process of closing Coinbase Borrow. Customers are unable to take out new lines of credit against their crypto and existing Coinbase Borrow customers will have until November 20, 2023 to pay back their existing loans. Below we’ll review what you can expect over the coming months.
Why is Coinbase borrow closing down?
We regularly evaluate our products to ensure we’re prioritizing the offerings that our customers care about most. After much consideration, we have made the decision to wind down Coinbase Borrow.
How does this impact me?
Customers with an existing loan that is due before November 20, 2023: This will not impact your existing loan, you can continue to make payments until you have completed your loan repayment schedule.
Customers who have a line of credit or loan that is due after November 20, 2023: You have until November 20, 2023 to repay your outstanding balance. After this date, we will close all accounts by selling enough BTC collateral to pay off any unpaid balance
We recognize the inconvenience, which is why we're taking extra measures to ensure a smooth transition for you. We have provided customers with a 4 month repayment period along with access to prioritized customer service through Coinbase One. We are also waiving the typical 2% liquidation fee if you choose to use your BTC collateral to pay back the loan or take no action and we sell the BTC for you.
How should I repay my loan?
You can review your payment options in the Payments and Collateral page here
What happens if I don’t pay back my loan by the due date?
If you have not repaid your loan by the due date we will sell your BTC collateral to pay back the outstanding loan. We will waive the 2% liquidation fee in this case. The liquidations will take place over 5 days, by gradually decreasing the LTV ratio at which we will liquidate at. This will enable us to minimize slippage of any BTC sell orders by spreading them out over time. You will receive an email notifying you of all liquidations. These may be partial liquidations of your collateral. Once your loan account is closed, you will receive a confirmation email.
Will my interest rate be impacted by this news?
No, your interest rate will remain the same over this time.
Can I pay off my loan early without any penalties?
Yes, there will not be any penalties for paying off your loan early.
Will there be any additional fees or charges associated with this?
No, there will not be any additional fees. We will also be waiving the 2% transaction fee for customers.
Are there any special offers or incentives available for customers affected by the deprecation?
In order to support a smooth transition, we are offering all impacted customers 4 months of free membership to Coinbase One, which includes prioritized customer support. All customers have received a promo code in their inbox to redeem this offer.
Coinbase One membership also comes with perks such as zero trading fees, boosted staking rewards, and more. You will get free Coinbase One for four months after activating the membership. After the free months expire, the membership will renew at $29.99/mo. You can cancel the membership prior to four free months ending to avoid being charged.
What if I already have prioritized support through Coinbase One? Do I get a refund on my membership?
Yes. If you are already a Coinbase One subscriber, you can still redeem the promo code for four free months of the subscription. The 4 months following redemption of the code will be free. Follow the instructions in your email to redeem your membership?
Does this impact Coinbase Prime Financing Customers?
No, Coinbase Borrow and Coinbase Prime financing are different products and services. This change only extends to Coinbase Borrow customers.