BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
FOLLOW
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result

Coinbase Set to Launch New Lending Services Targeted at Large Investors  

BlockNews Team by BlockNews Team
September 8, 2023
in Business, Finance, Investing
Coinbase
Share on TwitterShare on Reddit
  • Coinbase has launched a new crypto lending service for institutional clients in the U.S. to fill the gap that troubled firms like Genesis and BlockFi left.
  • The service allows institutional clients to lend money, primarily in crypto assets, with collateral exceeding the loan value, similar to a prime brokerage service in traditional finance.
  • Unlike its canceled Lend program for retail customers, this service targets institutions and operates under less stringent regulations aimed at sophisticated large investors.

Leading cryptocurrency exchange, Coinbase has introduced a crypto loan business aimed at institutional investors in the United States. According to a Bloomberg report published on Tuesday, the most prominent American exchange is attempting to fill the void left by the failure of crypto lending organizations such as BlockFi, Genesis Global, Celsius, and others.

Coinbase Lending Service Launches With Huge Investment

According to Bloomberg, the Coinbase loan program is off to a promising start, with Coinbase customers investing $57 million. This information was released in a Securities and Exchange Commission filing in the United States.

The Coinbase lending service enables institutional clients to lend capital to exchanges in the form of crypto assets.

These assets are collateralized by other digital assets of greater value, which protect against any market losses.

With these funds, Coinbase then lends these assets to other institutional clients.

Furthermore, Coinbase’s new product allows its customers to lend cryptocurrency in an arrangement that the exchange claims meets the requirements of Regulation D under U.S. securities regulations.

To put it another way, Coinbase can raise funds for its lending program by selling equities or securities without having to register these assets with the Commission.

Interestingly, this is not Coinbase’s first foray into the cryptocurrency lending industry.

The American crypto exchange planned the launch of the Lend function in June 2021, allowing retail investors to earn a 4% APY by investing in USDC, which other verified users may borrow. 

However, due to multiple legal concerns from the SEC, the exchange was forced to abandon the project in September 2021. Coinbase also discontinued its Borrow function, which allowed customers to borrow monies using Bitcoin as security, in May 2022.

Is Crypto Lending Increasing?

In other news, with the advent of significant crypto firms, the crypto loan industry has maintained its comeback from last year. In addition to Coinbase, the Bitget crypto exchange has announced the launch of its crypto loan business in July 2023 to lure consumers who are dissatisfied with the existing lending system.

Meanwhile, Blur, the largest non-fungible token (NFT) trading volume marketplace, introduced Blend, a peer-to-peer lending service that allows users to borrow ETH using NFTs as collateral.

Tags: CoinbaseInvestingLending Service
TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

OKX and Solana Mobile Partnership
Business

OKX Partners with Solana Mobile to Boost Accessibility to Web3 via Saga 

September 22, 2023
Linear Finance Breach
DeFi

Linear Finance Faces Major Security Breach Draining the DeFi Protocol’s Liquidity

September 22, 2023
etoro crypto
Business

eToro Gains Significant Crypto Approval from Cyprus Financial Regulator

September 22, 2023
Alchemy Pay Logo
Business

Alchemy Pay Secures Key Certification to Boost Global Footprint

September 22, 2023
JPEX Under Fire from Hong Kong
Business

JPEX Denied Access to Online and Mobile Services in Hong Kong Amidst $166 Million Scam Allegations

September 22, 2023
Venom x PYUSD
Crypto

PayPal Introduces PYUSD Stablecoin to Venmo Users

September 22, 2023
Load More
Next Post
digtal ruble

Russian Financial Expert Foresees Shift in Banking with Digital Ruble Rise

SEC-Logo-Bitcoin

Grayscale Presses SEC on Bitcoin Fund Following Court Victory

FASB Adopts Crypto

FASB Adopts Crypto Accounting and Disclosure Rule for Companies

Related News

blockchain security

Security Firms Report that 280 Blockchains Could be at Risk of Zero-Day Exploits

March 15, 2023
california governor

California Governor Failed to Disclose Personal Ties to Silicon Valley Bank $SIVB While Lobbying for a Bailout

March 17, 2023
thallo_io celo blockchain

Thallo Tokenizes Carbon Credits onto the Celo Blockchain Using Two-Way Carbon Bridge

August 21, 2023

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Featured
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
Discord Twitter Instagram TikTok
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Featured
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • OKX Partners with Solana Mobile to Boost Accessibility to Web3 via Saga  September 22, 2023
  • Linear Finance Faces Major Security Breach Draining the DeFi Protocol’s Liquidity September 22, 2023
  • eToro Gains Significant Crypto Approval from Cyprus Financial Regulator September 22, 2023

© 2022-2023 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022-2023 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?