Coinbase unveiled a new feature that lets customers borrow up to $1 million in cash from their Bitcoin wallet yesterday.
“Big news for the #BTC set …We’re excited to announce that eligible customers can now borrow up to $1 Million USD from Coinbase,” the company tweeted.
“Have you ever needed cash for something urgent, like medical bills or car repairs? In the past, you might have sold Bitcoin to cover it and incurred a taxable gain or loss. Now you don’t have to,” the company says on its website.
The new feature has no fees or credit checks involved, “just a low APR [annual percentage rate] of 8%, according to its website. The borrowed cash can be instantly added to PayPal or transferred via ACH to your bank account.
Customers can borrow as much as 40% of the value of the Bitcoin in their account, up to $1,000,000.
“Each month you only need to pay the interest due ($10 min). Pay off the balance when you’re ready. The Bitcoin you use as collateral remains safely held by Coinbase. It’s not lent out or used for any other purpose,” according to the website.
“Congratulations. One small step for Coinbase, one giant leap for #Bitcoin,” Microstrategy co-founder Michael Saylor tweeted. “Now you never have to sell your Bitcoin.”
Coinbase will also offer fixed-term loans, currently only available for Coinbase customers in Connecticut. These will allow customers to borrow up to 30% of the Bitcoin value in cash, up to $100,000. They have an 8% APR with no credit check.
See: Bank Bets Big on Crypto, Backs Loans with Ethereum: ‘Bitcoin Will Aways Be the Gold, Ethereum Will Always Be the Silver’
Find: Crypto Comprehension Study: 98% of People Don’t Grasp Basics of Bitcoin, Stablecoins or NFTs
The crypto platform has been diversifying its offerings at a fast pace. Most recently, it announced it would launch an NFT marketplace in late 2021. Its waitlist reached 1 million signups within 24 hours, as GOBankingRates previously reported.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Coinbase Offers Customers Loans Up To $1 Million Using Bitcoin as Collateral