Employees of Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, watch as their listing is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York, U.S., April 14, 2021. REUTERS/Shannon Stapleton Acquire Licensing Rights

Sept 5 (Reuters) – Crytocurrency exchange Coinbase Global (COIN.O) is launching a digital asset lending platform aimed at large institutional investors, a company spokesperson told Reuters on Tuesday. This move comes in response to the growing demand for crypto lending options from institutional investors who seek to maximize their returns on cryptocurrencies while maintaining the security and stability of their investments. Coinbase Global’s new platform will provide a secure and reliable solution for institutional investors to lend their digital assets and earn interest on them, helping them generate additional revenue streams in this rapidly evolving market.

Coinbase has raised $57 million for its new crypto-lending platform, a regulatory filing showed. This significant amount of funding highlights the positive outlook and confidence in the potential of crypto lending as a lucrative business model. The funds will be utilized to further develop and enhance the platform’s features, security measures, and user experience, ensuring that institutional investors have access to a cutting-edge and user-friendly lending platform.

The crypto industry, which was reeling from several high profile failures, got a boost last week after a three-judge panel ruled that the Securities and Exchange Commission (SEC) was wrong in rejecting Grayscale’s proposed bitcoin ETF without explaining its reasoning. This ruling brings more clarity and credibility to the crypto market, signaling a more favorable regulatory environment for digital assets. As institutional investors increasingly embrace cryptocurrencies, Coinbase Global’s new crypto-lending platform will play a crucial role in providing them with a secure and regulated avenue for maximizing the potential of their holdings.

Coinbase last month had secured approval to offer cryptocurrency futures to U.S. retail customers, scoring a major regulatory win. With the addition of crypto-lending services, Coinbase is solidifying its position as a leading provider of comprehensive cryptocurrency services. This strategic expansion into crypto-lending allows Coinbase to capture a larger share of the growing institutional investor market, positioning itself as a one-stop solution for institutional clients looking to trade, invest, and lend digital assets.