Crypto news

Coinbase introduces crypto lending platform for US institutions.

Coinbase, the cryptocurrency exchange, has expanded its services by introducing a dedicated crypto lending platform for institutional investors in the United States.

This move by Coinbase is seen as an opportunity to tap into the growing demand for reliable lending solutions within the crypto market.

Coinbase makes the platform available to US investors as part of its existing offering called Coinbase Prime.

“With this service, institutions can choose to lend digital assets to Coinbase under standardized terms in a product that qualifies for a Regulation D exemption.”

Coinbase’s newly launched lending program has garnered significant interest from customers,

with investments totaling $57 million since the initial sale commenced on August 28.

The program has already attracted five investors as of September 1,

as reported in a filing with the U.S. Securities and Exchange Commission.

In line with its mission to revolutionize the outdated financial system and enable greater economic freedom,

Coinbase has introduced a new product.

This strategic move leverages the power of cryptocurrencies to provide individuals with increased opportunities for economic growth and autonomy.

Coinbase’s commitment to reshaping the financial landscape, which originated over a century ago,

highlights its dedication to empowering individuals in the swiftly evolving digital economy.

Coinbase Launches $1 Million Bitcoin-Backed Loan Program Amidst SEC Allegations and Industry Challenges

Although this latest program allows users to access loans of up to $1 million backed by Bitcoin collateral.

Significantly, Coinbase’s Credit, the entity responsible for managing Coinbase Borrow,

operates the institutional initiative.

basically This development comes in the aftermath of the U.S. Securities and Exchange Commission (SEC) charging Coinbase with the alleged sale and offering of unregistered securities related to its crypto staking services.

Coinbase has strongly refuted these claims, maintaining that it disagrees with any assertions that its staking services qualify as securities.

As the proceedings continued,

furthermore, Coinbase had to suspend its staking program in four specific states: California, New Jersey, South Carolina, and Wisconsin.

The crypto lending industry was severely impacted by a significant crisis in the previous year,

as major companies such as BlockFi, Celsius, and Genesis Global faced bankruptcy due to a liquidity shortage caused by the 2022 bear market.

This ordeal prompted calls for the crypto lending sector to address challenges related to short-term assets and liabilities,

urging the industry to learn from such collapses and implement necessary improvements.

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