Crypto giant Coinbase appears to be strategically steering its ship amid ongoing crypto industry turbulence in 2023. The company recently unveiled its lending platform for institutional investors, aiming to fill the void left by major players over the winter. cryptographic of 2022, when companies like Celsius Network, BlockFi, and Genesis went bankrupt.
The move comes after the company shut down its Borrow service for retail customers in May amid regulatory scrutiny. The service allowed certain customers to use cryptocurrency as collateral to receive a cash loan. The new lending solution, however, is focused on institutional investors: companies or organizations that invest on behalf of their clients, such as mutual funds and pension plans.
Coinbase's new venture amassed millions in capital within days of its launch, documents filed with the US Securities and Exchange Commission (SEC) show. Despite headwinds and uncertainty, the service's debut indicates that crypto lending among high-profile investors is still in demand in the United States.
This week's Crypto Biz also explores the latest report on Bitcoin mining from Marathon Digital, Hana Bank's decision to offer cryptocurrency custody, and Google's new crypto ad policy.
Coinbase Launches Crypto Lending Platform for US Institutions
Coinbase cryptocurrency exchange has launched a cryptocurrency lending service for institutional investors in the US, which allegedly seeks to capitalize on massive failures in the crypto lending market. According to a document filed with the SEC, Coinbase customers have already invested more than $57 million in the lending program since the first sale occurred on August 28. In another headline, Coinbase's newly launched Base network reached over 700,000 non-fungible tokens (NFTs) minted in August. . The minted tokens were part of the launch strategy to stimulate adoption. The launch of the Base, however, has not been perfect. network suffered a cut on September 5 when its sequencer stopped producing blocks. Several scams have also been promoted online, including a $6.5 million scam by Magnate Finance.
Marathon Bitcoin Mining Rate Dropped 9% in August
Crypto Mining Operator Marathon Digital Holdings produced 1,072 Bitcoin in August — 9% less than in July. According to the company, the lower production was due to increased reduction activity in Texas due to record temperatures. The term reduction refers to the reduction of electricity generated to maintain a balance between demand and supply. The temporary closures more than offset the strides made by the company to increase its operational hash rate and streamline operations, according to its chief executive, Fred Thiel. Marathon increased its US operational hash rate by 2% month-over-month to 19.1 exahashes in August. The performance increase is attributed to the upgrade of Bitmain Antminer S19j Pro miners to the more efficient S19 XP models.
Google will allow NFT game ads starting September 15
Google has updated its cryptocurrency advertising policy allow ads for blockchain-based NFT games as long as they do not promote gambling or gambling services. The new policy will continue to prohibit game ads that allow players to gamble or wager NFT against other players or for rewards. NFT casino games that offer players to wager or play for prizes, such as NFTs, cash, or cryptocurrency, will also continue to be prohibited. Google previously banned all cryptocurrency-related advertising on its platforms in March 2018.
NFT game ads will soon be welcomed on Google's search platform as long as they do not promote any type of game. https://t.co/gSVeHxxkjx
— Cointelegraph (@Cointelegraph) September 6, 2023
South Korea's Hana Bank enters cryptocurrency custody business with BitGo
One of the largest banks in South Korea, KEB Hana Bank, is moving to offer digital asset custody services through a new partnership with cryptocurrency custody firm BitGo Trust Company. According to local media reports, KEB Hana Bank has signed a strategic business agreement with BitGo to jointly establish custody of digital assets in South Korea. The commercial bank has a network of 111 branches with local banking assets of nearly $10 billion and equity of $490 million. Together, Hana Bank and BitGo plan to launch their cryptocurrency custody joint venture in the second half of 2024.
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