• Coinbase Borrow – the official lending protocol of Coinbase, one of America’s largest and most popular digital currency trading platforms – has ceased all operations.
• The end for Coinbase Borrow arrived on May 10 as the last day on which customers could take out loans.
• Right now, many analysts are being forced to come up with their own conclusions and assumptions regarding the reasons for the closure.

Coinbase Shuts Down Its Borrowing and Lending Division

Coinbase Borrow – the official lending protocol of Coinbase, one of America’s largest and most popular digital currency trading platforms – has ceased all operations. The end for Coinbase Borrow arrived on May 10 as the last day on which customers could take out loans. Those who received loans prior to this date were told their financials wouldn’t be affected.

Reasons Behind Closure Unknown

Right now, many analysts are being forced to come up with their own conclusions and assumptions regarding the reasons for the closure. One can say, for example, that the borrowing and lending arena in the crypto world has been rather up and down over the past year, and thus Coinbase doesn’t want to take any chances.

Impact On Outstanding Loans

At present there is no impact on customers’ outstanding loans due to this closure, so no action is required from them [currently].

Crypto Industry Still Reeling From Actions Of 2022

The crypto industry is still reeling from events of 2022 where assets like bitcoin have experienced some degrees of healing since 2023 began; however a black cloud still hangs over many crypto and blockchain institutions. It may be some time before everything is fully resolved.

Coinbase Under Heavy Scrutiny From SEC

Coinbase has been facing multiple issues in recent months; including a Wells notice from US regulators alleging that securities laws might have been violated when it traded digital assets deemed securities by regulators during 2017–2018 without registering them first.