Coinbase launches institutional lending service, increases buyback of $180 million in corporate bonds.

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Coinbase Launches Institutional Lending Services

According to documents filed on September 1 with the SEC, Coinbase's subsidiary, Coinbase Credit, Inc., has applied for institutional lending services and has deployed $57 million for the lending platform, focusing on serving institutional users.

Is Coinbase Unfazed by Legal Pressure?

Coinbase's recent product policies seem somewhat unexpected, as the platform recently decided to cancel its Bitcoin lending program for retail customers by November 20 through Coinbase Credit, Inc., yet it has now launched lending services for institutions.

Coinbase announced in mid-July: it will fully cancel the Bitcoin lending program for retail customers

Additionally, in September 2021, there were reports that the SEC was scrutinizing the lending product "Coinbase Lend," claiming it falls under securities and warning that further updates to the product could lead to a lawsuit against Coinbase.

Coinbase subsequently delisted the product and stated that it had decided not to launch interest products for USDC.

Recalling the statement at that time: Exchange Compliance | Coinbase Discontinues Lending Products

However, Coinbase launched a USDC yield product in mid-June this year, offering up to a 4% interest rate based on the amount of USDC held in the account.

The ongoing legal battle between Coinbase and the SEC does not seem to exert much pressure or limitation on their product diversification.

Coinbase Continues to Buy Back Company Bonds

Shortly after releasing its second-quarter financial report on August 8 this year, Coinbase announced that it would repurchase up to $150 million in outstanding 3.625% senior notes due in 2031, totaling $1 billion.

On September 5, they further announced an increase in the maximum repurchase amount from $150 million to $180 million and extended the expiration date of the tender offer from September 1, 2023, to September 18, 2023, Eastern Time.