Coinbase CEO Brian Armstrong
Coinbase CEO Brian Armstrong at TechCrunch's Disrupt SF 2018 conference on September 8, 2018. TechCrunch

On August 13, the Product Manager of Coinbase, Thorsten Jaeckel, announced that the exchange will offer bitcoin-backed loans to customers, allowing them to borrow up to 30% of their Bitcoin holdings in cash with capped credit lines at $20,000 per customer.

According to the announcement, US clients will be able to receive their loans in two to three days after filling out a brief application without having to go through a credit check. This way, Coinbase can now offer its customers secure access to cash, while giving them even more control over their assets.

“We hear from customers that they need cash for expenses like home renovations or car repairs, but they do not want to prematurely sell their crypto, or take out high-interest loans that could come with 20%+ APR,” said Jaeckel. “With portfolio-backed loans on Coinbase, customers can borrow cash quickly from their Coinbase accounts. No need to fill out a long application or go through a credit check. Customers can simply sign up with a few taps and get the cash in their accounts within 2–3 days.”


Coinbase is known as one of the safest web wallets, keeping almost 99% of its assets in an inaccessible offline cold storage. The company follows strict regulatory policy and diligently complies with all international and US laws. As of this moment, the new feature is available in 17 states:

  • Alaska
  • Arkansas
  • Connecticut
  • Florida
  • Georgia
  • Illinois
  • Massachusetts
  • New Hampshire
  • New Jersey
  • North Carolina
  • Oregon
  • Texas
  • Virginia
  • Nebraska
  • Utah
  • Wisconsin
  • Wyoming

That said, the San Francisco-based exchange is said to be pursuing licenses in other states and countries in order to expand its lending services. In the announcement, it was also stated that a waitlist opened Wednesday afternoon, which allows clients to sign up for loans effective later this year.