The leading crypto exchange, Coinbase has started offering crypto lending services for institutional investors in the US.
According to the company’s recent SEC filing, Coinbase has received a $57 million funding for this platform. The prominent crypto exchange is entering the market to capitalize on the vacuum left after the collapse of firms such as BlockFi Inc.
While Coinbase closed its crypto loan services for retail investors in May, the new platform now allows institutional investors to lend crypto assets against overcollateralized loans.
Amid the SEC’s tight restriction towards both retail and institutional crypto service providers, Coinbase’s this move could become a significant traction into the financial market.
Coinbase said, “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,”
While several institutional players have tragically failed into this domain including Celsius and BlockFi in recent time, Coinbase’s institutional program will be closely tracked by the crypto industry.
Also read: Grayscale Sent SEC A Letter For Spot Bitcoin ETF Proceeding
