Coinbase Enables Loans Backed by XRP, ADA, and DOGE in US
Analysis
Price Impact
MedCoinbase enabling crypto-backed loans for these altcoins adds a new layer of utility and potential demand, as holders can access liquidity without selling. this can reduce immediate selling pressure and encourage long-term holding.
Trustworthiness
HighThe information comes directly from coinbase, a major, reputable exchange, announcing a new product feature. the details provided are specific and verifiable.
Price Direction
NeutralWhile the new lending service introduces utility and could increase demand for holding these assets, potentially creating a bullish sentiment, the inherent risks (variable interest rates, collateral liquidation) act as a counterbalance. the immediate price impact might be tempered by these factors.
Time Effect
LongThe addition of a new financial service on a major exchange like coinbase for these assets can slowly build consistent demand and utility over time, rather than causing an immediate sharp price movement. its long-term adoption will determine its true impact.
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Cover image via U.Today Read U.TODAY on Google News Instant liquidity Various risks Advertisement Coinbase has now expanded its lending services to include some of the market's most popular altcoins. The new feature makes it possible for U.S. customers to borrow against their holdings without triggering a taxable event or losing their market position. XRP, Dogecoin (DOGE), Cardano (ADA), and Litecoin (LTC) are among the supported coins. Users can borrow up to $100,000 in USDC, the second-largest cryptocurrency. HOT Stories Morning Crypto Report: XRP Defends 200-Week Support, Altcoin Sell-Off Hits Five-Year Highs, Arthur Hayes Shares Two Scenarios for Bitcoin Amid 'AI Financial Crisis' Saylor: 'We Are in Crypto Winter' Instant liquidity The new feature is designed for speed and efficiency. Users will get "instant" liquidity with the help of their coins. Advertisement This crypto-backed facility allows investors to access cash (via the USDC stablecoin) immediately while keeping their long-term investment strategies intact. This sets Coinbase apart from traditional lending products that often require lengthy approval processes. card It is worth noting that the top US exchange has opted to rely on decentralized infrastructure to power the aforementioned product. Advertisement The exchange confirmed that the lending engine is "Powered by Morpho" and "Running on Base," Coinbase's own Layer-2 network. This integration shows a growing trend of centralized exchanges (CEX) utilizing decentralized finance (DeFi) protocols to enhance user utility. The service is available immediately to customers in the United States, with the notable exception of New York. Various risks Coinbase has also outlined some possible risks that are associated with crypto-backed lending. These loans have variable interest rates, which means that market conditions could affect borrowing costs. Furthermore, the exchange has pointed to the risk of collateral liquidation. If the value of the collateral assets drops significantly, users may need to add more funds. They also might end up selling their assets in order to cover the loan. #XRP News #Bitcoin News