Prime

Base

Read

Coinbase Global, the second largest cryptocurrency exchange by market cap, plans to launch a digital asset lending platform for large institutional investors on Sep. 5. 
According to a regulatory <a href="https://www.sec.gov/Archives/edgar/data/1986579/000198657923000002/xslFormDX01/primary_doc.xml" target="_blank" rel="noopener">filing</a>, the exchange has successfully secured $57 million in funding for this venture. 
The platform, Coinbase Prime, is designed as a comprehensive prime brokerage service for US-based institutions. 
It enables clients to both trade and securely store tokens. Furthermore, institutions have the option to lend their digital assets to Coinbase under standardized terms, which qualifies for a Regulation D exemption. 
 You might also like: <a href="https://crypto.news/coinbases-base-faced-its-first-significant-outage/"> Coinbase’s Base faced its first significant outage </a> 
Coinbase’s filing with the Securities and Exchange Commission (SEC) shows that the first sale was on Aug. 28, and by Sept. 1 (just four days later), Coinbase Prime had attracted five investors. 
The platform’s launch is a reaction to regulatory problems caused by the SEC accusing the exchange of selling unregistered securities through its crypto-staking services. 
Coinbase has strongly disagreed with the SEC’s classification, stating that its staking services shouldn’t be considered as securities. 
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio">
 <div class="wp-block-embed__wrapper"> <iframe title="Coinbase CEO Armstrong on Being sued by the SEC, future of regulation" width="1020" height="574" src="https://www.youtube.com/embed/j3RpmY06KzU?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
 </div>
</figure> 
As one of the repercussions, the exchange had to shut down its crypto-staking service in&nbsp;<a href="https://www.coinbase.com/blog/why-we-stand-by-staking" target="_blank" rel="noreferrer noopener">four states</a>&nbsp;while the proceedings were resolved. 
This came after the downfall of the industry in 2022, when the crypto lending industry also took a hit, with companies like <a href="https://crypto.news/celsius-bankrupt-allocates-24-million-for-legal-expenses/" data-type="post" data-id="14179075">Celsius</a>&nbsp;and&nbsp;<a href="https://restructuring.ra.kroll.com/genesis/#:~:text=On%20January%2019%2C%202023%2C%20Genesis,Southern%20District%20of%20New%20York." target="_blank" rel="noreferrer noopener">Genesis Global</a>&nbsp;claiming bankruptcy. 
The release of the Coinbase Prime platform effectively fills this pretty major&nbsp;market gap. 
Coinbase has since received a few wins for the industry including the approval to offer cryptocurrency futures to <a href="https://www.reuters.com/markets/us/coinbase-gets-approval-allow-crypto-futures-trading-us-2023-08-16/" data-type="link" data-id="https://www.reuters.com/markets/us/coinbase-gets-approval-allow-crypto-futures-trading-us-2023-08-16/" target="_blank" rel="noopener">U.S. retail customers</a> back in August. 
 Read more: <a href="https://crypto.news/coinbases-base-faced-its-first-significant-outage/"> Coinbase’s Base faced its first significant outage </a>

Coinbase Global to launch lending platform for institutional investors

crypto.news

Other articles published on Sep 6, 2023

Harga SOL dan XRP Melambung, Pomerdoge Cetak Sejarah

Best Crypto to Buy Now September 6 – Synthetix, Chainlink, Render

Presidential Hopeful Vivek Ramaswamy Gives Support to Bitcoin

This Cardano (ADA) Pair Removed From Binance

New Viral Coin ATM Pumps Up 2,500% But Blockchain Analysts Say Its a Scam – Here's the Next Crypt...

The SEC vs. Binance: Unsealed Documents Could Spell “Reckoning Day” for Crypto

Join our free newsletter for daily crypto updates!