As stated by a spokesperson for Coinbase, “With this [lending] service, institutions can choose to lend digital assets to Coinbase under standardized terms in a product that qualifies for a Regulation D exemption.”
Weeks after shutting down its Borrow program, Coinbase has decided to launch a new lending platform for US-based institutional clients.
Coinbase’s lending platform first came into the light when a regulatory filing revealed the exchange had successfully raised $57M for the new venture by September 1. Coinbase’s latest lending program will be operated via Coinbase Credit, the subsidiary responsible for managing Coinbase Borrow.
The news is a welcome development for the crypto lending industry that has seen a lot of key players, including Nexo, exit the US market due to pressure from regulators. Kraken also had to discontinue its staking services to avoid further complications with the US regulators.
Similarly, Coinbase halted the Coinbase Borrow program in the month of July. Although Coinbase did not elaborate on why it decided to close the service, the crypto community speculates the ongoing conflict between the SEC and the exchange is the reason behind the sudden closure of the Borrow program.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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