Coinbase has created a crypto lending service aimed at institutional investors. For these purposes, the crypto exchange raised $57 million, according to reports for SEC.
Informed sources speaking to CoinDesk said that in order to receive a loan, users must provide collateral higher than the amount raised.
The new service differs from the Lend program, which was phased out in 2021, which was intended for retail users. A similar category of investors could also borrow against the security of bitcoin in the Borrow service, which the platform stopped in May 2023.
“Through the new service, institutions can provide digital assets to Coinbase under standardized terms under a product that is exempt from Rules D“, company representatives said.
The platform will fill the niche vacated after the departure of Celsius Network, BlockFi and Genesis Global, according to Bloomberg.
Recall that in April, the Bitstamp crypto exchange introduced a lending service in coins with large capitalization, focused on some markets in Europe, Hong Kong and the UAE. The service is not available to US and UK residents.
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