Cryptocurrency exchange Coinbase Global is launching a digital asset lending platform aimed at large institutional investors, a company spokesperson told Reuters on Tuesday. Coinbase has raised $57 million for its new crypto-lending platform, a regulatory filing showed. The crypto industry, which was reeling from several high profile failures, got a boost last week after a three-judge panel ruled that the Securities and Exchange Commission (SEC) was wrong in rejecting Grayscale's proposed bitcoin ETF without explaining its reasoning.
The new service differs from the controversial Lend program that Coinbase canceled in 2021. That was pitched at retail customers, and SEC officials objected. This latest lending service is instead geared toward institutions, which means regulation is less onerous – on the presumption large investors have the sophistication to handle it.
"With this service, institutions can choose to lend digital assets to Coinbase under standardized terms in a product that qualifies for a Regulation D exemption," a Coinbase spokesperson said in a statement. "Coinbase is working to update the financial system that was built over 100 years ago, leveraging crypto to provide people with more economic freedom and opportunity. To advance this purpose, Coinbase is building the most trusted crypto products and services, and supporting other builders to bring 1 billion people into crypto."
Coinbase is a popular cryptocurrency exchange and platform that allows users to buy, sell, and trade a variety of cryptocurrencies, including Bitcoin, Ethereum, and many others. Founded in 2012, it has become one of the most well-known and user-friendly cryptocurrency exchanges globally. Coinbase has played a pivotal role in bringing cryptocurrencies into the mainstream. Its commitment to simplicity, security, and compliance has garnered the trust of millions of users worldwide.
As the cryptocurrency ecosystem continues to evolve, Coinbase remains a central player, shaping the future of digital finance and offering a gateway for both beginners and experienced traders to explore the exciting world of cryptocurrencies. With its dedication to innovation and user-centric design, Coinbase is likely to continue influencing the cryptocurrency landscape for years to come.
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