Coinbase (NASDAQ:COIN) Global Inc. (NASDAQ:COIN) has introduced a cryptocurrency lending service for institutional investors in the U.S, following the bankruptcy of major crypto lenders such as Celsius Network, BlockFi, and Genesis Global in 2022. The new service aims to fill the gap left by these companies and strengthen Coinbase's position in the crypto industry.
According to a filing with the U.S. Securities and Exchange Commission (SEC) on Tuesday, the lending program will allow institutions to "lend digital assets to Coinbase under standardized terms in a product that qualifies for a Regulation D exemption." The exemption allows companies to offer a limited amount of securities without registering with the SEC. As of August 28, the program had already raised $57 million from investors.
Coinbase's venture into lending services comes at a time when the company is also dealing with legal challenges from the SEC. In June, the SEC charged Coinbase with alleged securities law violations, claiming that the company's staking-as-a-service program constituted an unregistered offer and sale of securities. Coinbase disagreed strongly with these allegations. Furthermore, on July 14, Coinbase suspended its crypto staking services in California, New Jersey, South Carolina, and Wisconsin after these states ordered the crypto exchange to ban retail customers from these services.
Despite these challenges, Coinbase continues to expand its offerings. Recently, it launched Base, an Ethereum layer-2 chain which has secured over $400 million in crypto assets locked in the network within its initial month, making it the eighth-largest blockchain for decentralized finance applications according to DeFiLlama data.
On another note, NFT traders are reportedly selling their once prestigious non-fungible tokens at significant losses due to fear that most NFTs may never regain their previous value. This comes after the SEC filed charges against NFT project Impact Theory, injecting fresh fear, uncertainty and doubt into the markets. As a result, total NFT losses for the week of August 28 showed that sellers were on the losing end of trades with over $11.9 million in losses.
In Singapore, Tharman Shanmugaratnam, the former chair of Singapore’s central bank who once called the crypto industry “purely speculative” and “slightly crazy,” has been elected as the city state’s president. While his role is largely ceremonial, his previous comments on crypto could influence policies on digital currencies in Singapore.
Lastly, Coinbase has tightened its Know Your Customer (KYC) procedures in Singapore in line with anti-money laundering and counter-terrorism financing rules established by the Monetary Authority of Singapore (MAS). Under the new mandate effective from September 5, Coinbase clients must provide additional details when depositing or withdrawing crypto from their accounts.
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