Alphabiz - Coinbase Offers Crypto Loans to Institutional Investors

[Apha Biz=(Chicago) Reporter Paul Lee] Coinbase plans to provide cryptocurrency loan services to US institutional investors. Unlike Genesis and Blockpi, which previously provided similar services, attention is being paid to whether they will succeed.

According to Coindesk, Coinbase reported this to the US Securities and Exchange Commission (SEC) on the 1st (local time). Coinbase is known to have secured $ 57 million (75.843 billion won) in funds for the service. Instead of lending funds (virtual assets, etc.) to Coinbase, Coinbase users can receive more than the amount of collateral they lent. This is a safety measure in case loan repayment is impossible.

Coin service also planned a loan service in 2021. The service was aimed at small customers, but SEC rejected the application. The services currently planned are likely to be freer from regulations in that they are targeted at institutions.

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)