Coinbase Exchange Secures $57 Million for New Crypto-Lending Platform

The post Coinbase Exchange Secures $57 Million for New Crypto-Lending Platform appeared first on Coinpedia Fintech News

Coinbase, a prominent player in the crypto industry, is no longer satisfied with being a trading platform. Future it is looking to expand its offerings while entering into the world of crypto lending, a realm traditionally dominated by traditional financial institutions. However, Coinbase has even managed to secure $57 million for its crypto lending platform.

Coinbase plans to Empower Institutions through Crypto Lending

Beyond facilitating cryptocurrency trading; Coinbase has a mission of reshaping a financial system that has remained largely unchanged for over a century.

Coinbase plans to borrow crypto assets from its customers and lend these assets to “institutional trading clients.” This means that by allowing regular people to borrow cryptocurrencies the focus will be now on enabling institutions to engage in this practice.

Simultaneously institutions will have the opportunity to lend their assets to Coinbase under terms that adhere to Regulation D guidelines. This novel approach represents a milestone in the world of cryptocurrencies as it simplifies involvement, for players. 

Coinbase’s Innovative Approach to Financial System Renewal

This ambitious effort by Coinbase sharply differs from their previous retail lending program, which was te­rminated in 2021. 

As Coinbase ventures, into this crypto lending endeavor, it is following the path taken by Genesis and BlockFi who have also faced their share of obstacles, in the realm of crypto lending.

Coinbase’s foray into this field showcases its dedication to establishing pioneering benchmarks ushering in an era of opportunities driven by blockchain technology and digital currencies.