Coinbase to deploy new lending platform for US institutional investors

Weeks after shutting down its Borrow program, Coinbase has decided to launch a new lending platform for US-based institutional clients.
Dot
March 8, 2024
Ayush Pande

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

TABLE OF CONTENTS
Brian Armstrong; Photo Source: Coinbase/Around the Block/Jeremy Allaire: The Money Movement (Youtube)
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.



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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.

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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.

Connect with Ayush on LinkedIn

Coinbase to deploy new lending platform for US institutional investors

HomeCrypto lending
Contents
Brian Armstrong; Photo Source: Coinbase/Around the Block/Jeremy Allaire: The Money Movement (Youtube)
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.



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


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
Author's profile picture

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.

Connect with Ayush on LinkedIn
Ayush Pande

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

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.



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


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
Author's profile picture

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.

Connect with Ayush on LinkedIn
Written by
Ayush Pande