π° Yello Paradisers!
Coinbase, the renowned cryptocurrency exchange, is diving deeper into the financial services sector by launching a crypto lending platform exclusively for institutional investors in the U.S.
π° What’s the New Service?
Named Coinbase Prime, this institutional-grade lending platform allows institutions to execute trades and custody assets. It operates under the same entity as Coinbase Borrow, which had previously halted new loans.
π° Regulatory Compliance
Coinbase assures that the new service is compliant with Regulation D exemptions, providing a standardized lending framework for institutions.
π° Initial Success
According to SEC filings, the lending program has already attracted $57 million in investments from five investors since its inception on August 28th.
π° Why Now?
The move comes at a time when the crypto lending industry is recovering from a liquidity crisis that led to the bankruptcy of major players like BlockFi and Celsius. Coinbase aims to offer a more stable and secure lending environment.
π° Lessons from the Past
Coinbase had previously faced SEC charges related to its staking services, leading to a temporary pause in four states. The company vehemently disagreed with the allegations, and it seems they are now taking cautious steps in the lending space.
π° Final Thoughts
Coinbase’s entry into institutional crypto lending could be a game-changer, especially given the recent failures in the crypto lending market. It’s a bold move that could set new standards for the industry.
π΄ ParadiseTeam π°