TechFlow reported, according to CoinDesk, that Coinbase has launched a new crypto lending service in the United States targeting institutional clients, helping fill the void left by bankruptcies at companies such as Genesis and BlockFi.
According to a U.S. Securities and Exchange Commission (SEC) filing, Coinbase had raised $57 million for the platform as of September 1. A source familiar with the matter said customers can lend funds—primarily crypto assets—to Coinbase and receive collateral exceeding the loan value. Coinbase can then provide secured loans to institutional trading clients, similar to the prime brokerage services banks offer in traditional finance.
Genesis and BlockFi previously offered similar lending services in the U.S., but suffered massive losses last year, leading them into full or partial bankruptcy proceedings. This new service differs from Coinbase’s Lend program, which was canceled in 2021. The Lend program targeted retail customers and faced opposition from SEC officials. In contrast, this latest lending service is aimed at institutional clients, where regulation is relatively lighter.
