Coinbase is preparing to introduce an institutional lending service, as per regulatory filings and company statements.
A representative from Coinbase informed CryptoSlate on Sept. 5:
“Coinbase is launching a digital asset lending program for its institutional Prime clients. Institutions can opt to lend digital assets to Coinbase under standardized terms in a product that meets the Regulation D exemption requirements.”
This exemption permits companies to sell securities within certain limits without registering with the U.S. Securities and Exchange Commission (SEC).
A filing submitted to the SEC on Sept. 1 indicates that Coinbase has requested exemptions for the service through its subsidiary, Coinbase Credit, Inc. The filing mentions Coinbase CFO Alesia Haas as a related individual.
The filing also reveals that Coinbase has allocated $57 million to its crypto-lending platform catering to institutional clients.
Coinbase’s Previous Lending Initiatives
Coinbase has previously explored various lending programs. It previously offered a Borrow service through Coinbase Credit, Inc, allowing retail users to secure cash loans by depositing Bitcoin as collateral. While existing users can still access parts of this service, new loans are not being offered.
Coinbase also planned to launch a interest-bearing Lend Program where users could earn interest by lending USDC to Coinbase. However, this program was canceled in September 2021 due to legal threats from the SEC. The service was axed before its launch, with no impact on users.
Currently, Coinbase offers 4% interest on USDC holdings, but this is applicable to holdings only and not part of a staking or lending service.
The original article “Coinbase launches institutional lending service” was first seen on CryptoSlate.
