Coinbase Will Close its Borrow Program for Retail Users in October

On November 20, 2023, Coinbase will officially shutter their Borrow program for retail customers, thereby ending their ability to take out cash loans using Bitcoin as collateral.

Customers who currently hold such loans have until this date to pay the remaining balance or Coinbase will sell the Bitcoin used as collateral in order to close the loan.

Coinbase has expressed that the decision comes as a way for the company to prioritize products and services that customers care about most, and this termination does not apply to Coinbase’s Prime and institutional clients.

This move follows a lawsuit brought against Coinbase by the US Securities and Exchange Commission due to the exchange not registering with the agency and allegedly selling unregistered securities.