Coinbase, BlockFi Inc. and launched a crypto lending service for US institutional investors looking to take advantage of the gap left after the collapse of firms such as Genesis Global Holdco.
Coinbase Starts Offering Crypto Loans to Major US Institutional Investors
Customers of the Prime service of the largest US crypto exchange have already invested $57 million in its lending program, according to a recent filing with the US Securities and Exchange Commission.
Coinbase Prime is a full-service prime brokerage platform that allows institutions to trade and store their assets.
“With this service, institutions can choose to lend digital assets to Coinbase under standardized terms in a product that complies with the Regulation D exemption,” Coinbase said in a statement.
Coinbase has attempted lending before. In May, it shut down its lending service that allowed people to borrow against Bitcoin.
This service, called Coinbase Borrow, served individual investors. The new institutional program is operated through the same organization, Coinbase Credit.
In June, the SEC charged Coinbase with an unregistered offer and sale of securities in connection with its staking program, which uses the service that allows users to give their coins to Coinbase to secure blockchain networks.
A group of US states had also demanded that Coinbase stop its staking services.
*This is not investment advice.