Coinbase, the largest cryptocurrency exchange in the U.S., has announced that it will be discontinuing its lending product, Coinbase Borrow, starting from next week. While existing users of the service will not be impacted, new loans will no longer be issued from May 10.
Launched in November 2021, Coinbase Borrow allowed eligible users from certain U.S. states to borrow up to $1 million using Bitcoin as collateral, with an annual interest rate of 8.7%. However, the exchange has confirmed that the decision to discontinue the service was based on an assessment of customer demands, and is not related to any regulatory pressure.
Coinbase had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) in March, which alleged that the company's staking products constituted unregistered securities. However, Coinbase has maintained that its staking services are not related to securities offerings, and that its Coinbase Wallet product does not constitute a broker.
In response to the SEC's Wells Notice, Coinbase had stated that it does not list securities, while also suing the regulatory agency over its "petition for rulemaking" that was sent in July 2021 and still remains unanswered.
Coinbase has also recently launched a new international exchange that will offer Bitcoin and Ethereum perpetual futures, with trades settled in USD Coin.
Read Also: The Rise of Cryptocurrency: Facts, Tips and Market Trends
A Personal Note from the Desk of the CEO
Welcome to iShook Finance, the premier finance news journalistic platform that brings you the most relevant, timely, and insightful information in the world of finance. As the CEO and founder, I am proud to share my vision and values with you, so you can better understand what drives our passion and commitment to delivering outstanding financial news.
At iShook Finance, we believe that the world of finance is more than just numbers and spreadsheets; it's a living, breathing ecosystem that connects people, businesses, and governments. Our mission is to empower individuals and organizations to make informed decisions by providing accurate, in-depth, and thought-provoking financial journalism.
My personal journey in the world of finance has been marked by curiosity, a relentless pursuit of knowledge, and a deep desire to share insights with others. As a finance enthusiast, I have always been passionate about understanding the intricacies of the global economy and the forces that shape it. With iShook Finance, my aim is to create a platform where our readers can access a wide range of perspectives, opinions, and expert analysis that will guide them through the ever-evolving financial landscape.
Our team of dedicated journalists, analysts, and editors work tirelessly to bring you the most accurate and up-to-date information. We take great pride in our journalistic integrity and adhere to the highest ethical standards, ensuring that our content is always unbiased, balanced, and data-driven.
At iShook Finance, we recognize that the world of finance is not a one-size-fits-all scenario. Our readers come from diverse backgrounds with unique financial goals and concerns. As such, we strive to provide a variety of content that caters to the needs of both seasoned professionals and novice investors alike.
In today's fast-paced digital world, it is essential for us to stay ahead of the curve. We are committed to embracing emerging technologies, trends, and innovative storytelling methods to ensure that our content remains engaging, relevant, and accessible to our audience.
As the CEO, my promise to you is that iShook Finance will continue to evolve and grow, staying true to our core mission of providing reliable and insightful financial news. I invite you to join us on this journey and share your thoughts, questions, and feedback with us. Together, we can redefine the way financial news is delivered, consumed, and understood.
Thank you for choosing iShook Finance as your trusted source for finance news.
Beni E Rachmanov
CEO & Founder,