Coinbase launches institutional-focused crypto-lending service

Coinbase has created an institutional-focused crypto-lending service. For these purposes the exchange raised $57 million, according to filings with the SEC.

Informed sources told CoinDesk that to obtain a loan borrowers must provide collateral above the amount borrowed.

The new service differs from the Lend program, which was rolled back in 2021 and designed for retail customers. A similar category of investors could also borrow against Bitcoin in the Borrow service, which the platform halted in May 2023.

“Under the new service, institutions can provide Coinbase’s digital assets on standardized terms within a product that falls under an exemption from Regulation D,” — according to company representatives.

The platform will fill the niche vacated after the exits of Celsius Network, BlockFi and Genesis Global, according to Bloomberg.

In April, Bitstamp unveiled an institutional-focused lending service for large-cap coins, aimed at certain markets in Europe, Hong Kong and the UAE. The service is not available to residents of the US and the UK.