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Bitcoin-Backed Loans Soar: Coinbase Achieves Remarkable $1 Billion Collateral Milestone

2025-07-15 10:56:26

Bitcoin-Backed Loans Soar: Coinbase Achieves Remarkable $1 Billion Collateral Milestone

Main Idea

Coinbase's Bitcoin-backed loans have surpassed $1 billion in collateral, highlighting Bitcoin's growing utility beyond speculation and its role in providing liquidity without selling the asset.

Key Points

1. Bitcoin-backed loans allow holders to borrow traditional currency using BTC as collateral, avoiding the need to sell Bitcoin and potentially benefit from future appreciation.

2. Coinbase launched its Bitcoin-backed USDC loans on January 16, with demand quickly leading to adjustments in loan terms.

3. The risks of Bitcoin-backed loans include price volatility, which may lead to margin calls or liquidation if the collateral value drops significantly.

4. Coinbase operates in the centralized finance (CeFi) space, differing from decentralized finance (DeFi) platforms in terms of custody, counterparty risk, KYC/AML requirements, and user experience.

5. The achievement of $1 billion in collateral underscores Bitcoin's evolving role in the financial market, bridging traditional finance and cryptocurrency.

Description

BitcoinWorld Bitcoin-Backed Loans Soar: Coinbase Achieves Remarkable $1 Billion Collateral Milestone Imagine having significant wealth tied up in Bitcoin, but needing immediate cash without wanting to sell your precious digital assets. This common dilemma is precisely what Bitcoin-backed loans aim to solve, and a recent announcement from Coinbase has truly underscored their growing importance in the crypto ecosystem. The leading crypto exchange has now seen the total collateral for its Bitcoin-b...

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Tags:
Crypto News BITCOIN COINBASE crypto loans CRYPTOCURRENCY DeFi.
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