Coinbase launches crypto lending service for large investors
Coinbase launches crypto lending service for large investors
Cryptocurrency exchange Coinbase has launched a cryptocurrency lending service for U.S. institutional investors, following the exit of major players such as BlockFi and Genesis Global from the digital asset market.
The platform revealed on September 1 in a filing with the U.S. Securities and Exchange Commission that it has raised $57 million for the program.
According to information published by Bloomberg, Coinbase's service will allow institutions to lend digital assets on the exchange under standardized terms.
The exchange intends to attract crypto assets for this program with the help of its users who have access to the Coinbase Prime platform.
It is worth noting that Coinbase previously offered lending services through its Coinbase Borrow service, which was shut down in May this year. However, Coinbase Borrow was focused on the retail market, while the new program offers services exclusively to institutional clients.
Recall that in June, U.S. regulators charged Coinbase with the unregistered offer and sale of securities in connection with the stake-as-a-service program, which allows users to transfer their coins to an exchange. At the same time, many U.S. states have asked Coinbase to cease its staking services.
"Coinbase is working to update the financial system built over 100 years ago with cryptocurrency to give people more economic freedom and opportunity. To achieve this goal, Coinbase is creating the most trusted crypto products and services and supporting other developers to bring 1 billion people into cryptocurrency," commented a Coinbase representative on the launch of the new program.
Read also: Bybit introduced TradeGPT to its users.
