Coinbase has introduced a new crypto lending service. In accordance with its new filings, the firm currently holds around $57 million for Prime account holders. The new service is directed towards institutional investors.
The firm has maintained that it is offering lending options in cryptocurrencies to commercial entities. Coinbase has retained that it is working on upgrading the financial network that was created 100 years ago.
In this manner, the firm intends to bring more economic liberty and inclusion. Coinbase officials have told media that it is building towards generating the most trusted products and services. At the same time, the firm is also working on bringing 1 billion new consumers to the crypto sector.
The listed exchange has also filed a document with the Securities and Exchange Commission on this account. Two months ago Coinbase revoked a similar service called Borrow that allowed its consumers to seek loan against Bitcoin using it as collateral.
Coinbase Introduces New Crypto Lending Features
The crypto exchange platform is currently dealing with a lawsuit filed by SEC. The federal agency is also trying crypto entities in the court with an aim to find unregistered securities among virtual currencies.
At the same time, Coinbase introduced Borrow lending program in 2021. This program allowed account holders to obtain fiat loans as high as $1 million by committing 30% Bitcoin reserves as collateral. Brain Armstrong, the CEO of the firm termed the program as expansion of the company economy.
Meanwhile, SEC has continued its crypto crackdown. The regulator has launched a series of lawsuit against Binance and its CEO CZ. The federal agency initiated prosecution against Coinbase and Binance within a few days gap.
Both companies have claimed that they intend to cooperate with the regulators and will fight against the charges brought by prosecution. While dealing with the trial, the exchange platform has launched new features.
Last week, allowed their German and UK consumers to link accounts with PayPal. PayPal has also introduced a new stablecoin namely PYUSD in tandem with Paxos. However, the stablecoin is only available for the consumers in USA.
Coinbase Prime, the branch that caters to institutional investors has formally rolled out lending services. The firm is building upon the services that were formerly offered by BlockFi, Celsius, and Genesis Global. This new feature went live on Prime on 28th August. Since start of September five new institutional investors have joined.
Coinbase retained that it halted Borrow services on account of reduced demand rather than influenced by enforcement action. The exchange is making strides against all odds but the layer-2 protocol Base recently suffered from a 2-hour outage that was quickly recovered. The officials at Coinbase have confirmed that the consumer funds are safe.
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