Coinbase Creates New Crypto Lending Service Geared Toward Large Investors

Coinbase (COIN) raised $57 million for the platform as of Sept. 1, according to an SEC filing.

Coinbase (COIN) has created a new crypto lending service in the U.S. for institutional clients, helping fill the void left by the blowups of firms like Genesis and BlockFi.

The platform was quietly revealed in a U.S. Securities and Exchange Commission filing on Sept. 1, which showed $57 million had already been raised for the program.

According to a person familiar with the matter, clients can lend Coinbase money – predominantly crypto assets – and get collateral exceeding the value of the loan. Such overcollateralization acts as a safeguard from disaster.