<\/p>\n
Coinbase is launching a cryptocurrency lending platform targeted at U.S. institutional investors, aiming to fill the gap left by lending companies that collapsed during the industry\u2019s crisis last year.<\/p>\n
The new lending service permits institutions to loan out digital assets under standardized terms and is structured to qualify for a Regulation D exemption, which allows for capital raising without full SEC registration, Coinbase reportedly said.<\/p>\n
Users of Coinbase\u2019s Prime service have already invested $57 million in the new lending program, according to a Sept. 1 regulatory filing<\/a> signed by CFO Alesia Haas.<\/p>\n Crypto exchanges incorporate lending services into their operations for multiple strategic objectives.\u00a0<\/p>\n Such services augment revenue channels beyond transaction fees, and also enhance customer retention by delivering a broader suite of financial solutions on a single platform.<\/p>\n Blockworks has reached out for comment.<\/p>\n This move comes about three months after the SEC sued<\/a> Coinbase for allegedly functioning as an unregistered exchange and not registering its cryptoasset staking service.<\/p>\n The SEC claimed that Coinbase\u2019s failure to register deprived investors of key protections, including SEC scrutiny, obligatory record-keeping and mechanisms to mitigate conflicts of interest.<\/p>\n Despite ongoing legal challenges, the National Futures Association recently granted<\/a> the exchange permission to provide eligible US clients with direct access to crypto futures through its platforms.<\/p>\n Coinbase recently decided to phase out<\/a> its prior lending service, Coinbase Borrow, citing low user engagement.\u00a0<\/p>\n The Borrow service allowed individual users to leverage up to 40% of their bitcoin holdings to secure fiat loans of up to $1 million, with an 8.7% annual interest rate.<\/p>\n In July, the exchange announced that existing loan holders must clear all outstanding balances by Nov. 20.<\/p>\n Get the day\u2019s top crypto news and insights delivered to your email every evening.\u00a0Subscribe to Blockworks\u2019 free newsletter<\/a>\u00a0now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can\u2019t-miss tweets and more from\u00a0Blockworks Research\u2019s Daily Debrief<\/a>.<\/strong><\/p>\n Can\u2019t wait? Get our news the fastest way possible.\u00a0Join us on Telegram<\/a>\u00a0and follow us on\u00a0Google News<\/a>.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Coinbase is launching a cryptocurrency lending platform targeted at U.S. institutional investors, aiming to fill the gap left by lending companies that collapsed during the industry\u2019s crisis last year. The new lending service permits institutions to loan out digital assets under standardized terms and is structured to qualify for a Regulation D exemption, which allows […]<\/p>\n","protected":false},"author":2,"featured_media":150777,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-150776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/150776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=150776"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/150776\/revisions"}],"predecessor-version":[{"id":150779,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/150776\/revisions\/150779"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/150777"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=150776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=150776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=150776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n