Leading cryptocurrency exchange platform Coinbase has taken a significant step by quietly introducing a cryptocurrency lending service aimed at institutional investors in the United States. This move is reportedly aimed at capitalizing on emerging opportunities in the cryptocurrency lending market.

Under the name of Coinbase Prime, the new cryptocurrency lending platform offers an institutional-grade solution for investors in the United States. Coinbase Prime, a full-service brokerage platform, enables institutions to trade and safeguard their assets.

“With this service, institutions can choose to lend digital assets to Coinbase under standardized terms in a product that meets the Regulation D exemption”, the firm said in its statement.

According to documents filed with the United States Securities and Exchange Commission (SEC), since its launch on August 28, Coinbase clients have already invested $57 million in this lending program, attracting five investors as of 1 of September.

This new Coinbase cryptocurrency lending product follows the suspension of issuance of new loans on Coinbase Borrow in May 2023. This program was designed to allow users to borrow up to 1 million using Bitcoin as collateral.

Importantly, this news comes several months after the US SEC accused Coinbase of allegedly offering and selling unregistered securities in connection with its cryptocurrency staking services, which allow users to earn returns by giving away their cryptocurrencies to the platform. Coinbase defended itself by arguing that it did not share the view that its staking services constitute securities.

The dispute led to the suspension of Coinbase’s staking program in four states: California, New Jersey, South Carolina, and Wisconsin, while legal proceedings continued.

This move by Coinbase comes at a time when the cryptocurrency lending industry is still reeling from last year’s crisis, which saw major companies like BlockFi, Celsius, and Genesis Global file for bankruptcy due to illiquidity caused by the bear market of 2022. Observers of the crypto space consider it critical that the cryptocurrency lending industry learns lessons from these crashes and addresses challenges related to short-term assets and liabilities.

K. Tovar

Source: Cointelegraph

(Reference image source: PiggyBank, Unsplash)

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La entrada Coinbase created a lending platform for the US apareció primero en Bitfinance.

In the midst of a growing institutional demand, cryptocurrencies have been the boom in the financial market on a global scale, where until now their value has doubled to exceed 2 trillion dollars.

Among the 6,600 coins tracked by CoinGecko, the popular bitcoin coin is the one that has generated the greatest impact, in addition to others that cover the market such as ethereum, binance coin, polkadot, tether and cardano, which present a combined value around the 422,000 million.

In a world where interests manage a value close to zero, institutional investors take cryptocurrencies as an alternative to increase cash yields. For this reason digital currencies have become the most valued sector.

Indeed, large North American companies have opted for crypto as a stable financial market for the future.

Tesla (NASDAQ: TSLA) recently invested $ 1 billion of its reserves in bitcoin and began accepting it as payment for cars. Morgan Stanley (NYSE: MS) is allowing some of its wealthiest clients to add the token to their portfolios, while companies from Mastercard (NYSE: MA) to PayPal (NASDAQ: PYPL) have taken steps to adopt bitcoin.

K. Villarroel

Source: investing

La entrada The crypto market already exceeds $ 2 trillion apareció primero en Bitfinance.

The oldest bank in the United States, BNY Mellon, has reported on its new plans to safeguard bitcoin and other crypto, in order to hold, transfer and issue digital assets under the form of asset manager on behalf of its clients.

The initiative comes after institutional investors, corresponding to the top ranks of BNY Mellon’s clientele, insisted on this measure after seeing the significant impact that cryptos have manifested in the financial market on a global scale.

As the Wall Street Journal points out, BNY Mellon is not the first in traditional finance to adopt digital assets. Other companies like Fidelity Investments have also joined the management of cryptocurrencies, due to the impact they have on the traditional world.

According to the report issued by the entity where it announces the new measures, it is specified that BNY Mellon plans to execute its plan through a platform, now in a prototype version, which will also be used to manage traditional holdings such as Treasury bonds and stocks.

However, the old bank has not placed limits on the type of cryptocurrencies it will guard, what is known is that a specialized team of bank executives, led by Mike Demissie, will be in charge of supervising the integration of custody and cryptocurrency management in all the bank’s businesses.

K.Villarroel

Source: cointelegraph

La entrada US bank BNY Mellon will offer bitcoin services apareció primero en Bitfinance.

The value of the popular cryptocurrency, bitcoin, has risen this Thursday to a level that exceeds $ 39,000, with a revaluation of more than 10% in the session and above 30% so far in 2021, a figure that exceeds 377% the accumulated increase in one year.

The analyst of the multi-asset investment platform eToro, Simon Peters, reported that the growing demand for the popular currency makes the asset see as a refuge opportunity against the great fear of the institutions in this 2021, the powerful inflation.

“The financial generosity we have seen from central banks and governments has eroded the value of traditional assets like cash and bonds. This shows no signs of abating, so the momentum behind bitcoin is unlikely to fade in the near future, ”Peters said.

Better than physical gold

For his part, the co-founder and CEO of Bitpanda, Eric Demuth, reported in a recent interview to Europa Press that bitcoin “is digital gold and, in several respects, even better than physical gold (cheaper to store and move; better divisibility; tamper-proof and easily verifiable). That is something that many small investors already understand and to which institutional investors are adapting”.

In this regard, the Office of the Comptroller of the US Currency clarified that national banks could use stablecoins to perform payment activities and other functions.

K. Villarroel

Source: abc

La entrada Bitcoin soars above $ 39,000 with revaluation of more than 10% apareció primero en Bitfinance.