Coinbase launches crypto lending platform for US institutions

Cryptocurrency exchange Coinbase has rolled out a crypto financing service for institutional financiers in the United States, reportedly aiming to profit from massive failures in the crypto loaning market.Coinbase has actually silently introduced an institutional-grade crypto financing platform, Coinbase Prime, to U.S. investors, according to a Bloomberg report on Sept. 5. Coinbase Prime is a full-service prime brokerage platform that lets organizations carry out trades and custody properties.” With this service, organizations can choose to lend digital properties to Coinbase under standardized terms in an item that gets approved for a Regulation D exemption,” the firm reportedly stated in the statement.According to a filing with the U.S. Securities and Exchange Commission, Coinbase customers have actually already invested $57 million in the loaning program given that the date of the first sale that took place on Aug. 28. The offering had actually drawn in 5 financiers as of Sept. 1. Information from a SEC filing by Coinbase Credit. Source: Coinbase SEC FilingsCoinbase did not instantly react to Cointelegraphs ask for comment.The new crypto financing product by Coinbase follows the halt of new loans issuance on Coinbase Borrow in May 2023. The program is developed to allow users to get up to $1 million through a Bitcoin (BTC) security. The new institutional program is operated through Coinbase Credit, the very same entity that handles Coinbase Borrow.Related: SEC vs. Coinbase: New attorney Patrick Kennedy signs up with fightThe news comes months after the U.S. SEC charged Coinbase with supposed offering and sale of unregistered securities in connection with its crypto starking services, which enable users to earn yields on giving their crypto to the platform. The exchange opposed the SECs claims, arguing that it strongly disagrees with any claims that its staking services were securities. Coinbase ultimately needed to pause its staking program in 4 states, consisting of California, New Jersey, South Carolina, and Wisconsin, while the proceedings were going forward.The crypto financing market was hit with a massive crisis in 2015, with significant business like BlockFi, Celsius and Genesis Global declaring bankruptcy amidst absence of liquidity triggered by the bearish market of 2022. Some crypto enthusiasts said that the crypto loaning sector need to find out lessons from the collapses and fix concerns associated with short-term properties and short-term liabilities.Magazine: Magazine: How to secure your crypto in a volatile market– Bitcoin OGs and professionals weigh in