In a strategic move to safeguard its market presence amid the turbulent waves stomping the cryptocurrency sector, the digital asset giant Coinbase recently launched its lending platform. This initiative appears as a calculated risk after major industry players like Celsius Network, BlockFi, and Genesis declaring bankruptcy during the 2022 cryptocurrency winter. Coinbase once offered a Borrow service that allowed customers to receive cash loans against their crypto assets as collateral. However, regulatory scrutinies compelled the company to cease its operation in May.
The newly unveiled Coinbase platform targets institutional investors. This ground has been a tough nut to crack for crypto firms due to the regulations and perceived risks. Nevertheless, Coinbase’s new venture reportedly accumulated millions in capital within its maiden days of operation, proving a persistent demand for crypto lending among veteran investors.
September brought a mix of defeats and victories in the crypto realm. On the one hand, Marathon Digital Holdings reported a 9% slump in their Bitcoin mining performance. They attribute this dip to the escalated curtailment activity in Texas caused by soaring temperatures. Nevertheless, the firm managed to increase its operational hash rate by 2%.
On the flip side, a new advertisement policy from Google set to take effect on September 15 will permit the promotion of blockchain-based NFT gaming. However, the policy comes with a catch – it will still outlaw advertisements promoting gambling or gambling services. The latitude embraced by Google could inarguably open another significant avenue for NFT enthusiasts and developers.
Lastly, the entrance of South Korea’s KEB Hana Bank into the crypto custody business as a partnership with BitGo Trust Company constitutes a significant transition in the banking sector. Banks venturing into cryptocurrency custody broadcasts a bold signal that traditional banking is becoming more open to digital assets, notwithstanding the challenges.
Recapping these updates reveals a dynamic interplay. Coinbase’s strategic move, given the history of bankruptcy in the crypto lending market, is akin to threading a needle’s eye. Similarly, Google’s new crypto ads policy walks the thin line of fostering blockchain use while curtailing potentially harmful industry practices. As the crypto market evolves, firms and regulators alike find themselves in an intricate dance, where every step’s precision determines the progression or regression of the cryptocurrency ecosystem.
Source: Cointelegraph
