Coinbase launches lending service Coinbase Credit for U.S. institutional clients, with the platform currently raising $57 million

ChainCatcher news, Coinbase disclosed in a filing submitted to the U.S. Securities and Exchange Commission (SEC) on September 1 that it is creating a new cryptocurrency lending service for institutional clients in the U.S. to help fill the gap left by the bankruptcies of companies like Genesis and BlockFi. The document shows that the new platform is named Coinbase Credit, Inc., and as of September 1, 2023, it has raised $57 million.

According to informed sources, institutional trading clients can borrow money (primarily crypto assets) from Coinbase, using an over-collateralized approach, similar to the bulk brokerage services offered by banks in traditional finance. This new service is different from Coinbase's Lend program, which was canceled in 2021 and targeted retail customers, facing opposition from SEC officials. The latest lending service is aimed at institutions, which means regulatory pressure is relatively lower, provided that large investors have sufficient experience to handle it.