Coinbase, a major cryptocurrency exchange, is now offering crypto loans to institutional investors in the United States as it seeks to strengthen its position in the American market amid regulatory challenges. The U.S. SEC filed a lawsuit against Coinbase in June, alleging regulatory violations.
This new service, operated through Coinbase Credit, has already seen around $60 million lent by Coinbase’s Prime customers. It allows institutions to lend digital assets to Coinbase under standardized terms and qualifies for a Regulation D exemption.
Coinbase’s move into crypto lending fills a market gap left by the struggles of leading cryptocurrency lenders like Celsius Network, BlockFi, and Genesis during the bear market.
Despite regulatory hurdles and SEC investigations, Coinbase is refocusing on the American market while also expanding globally, especially in Europe and the UK. It introduced the Coinbase International Exchange in Bermuda for non-U.S. institutional users.
In contrast, other companies like GameStop and Revolut are scaling back their crypto offerings in the U.S. due to regulatory uncertainties. Bitstamp has also decided to discontinue cryptocurrency staking services for Americans due to the current regulatory environment.
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