Riding The Wave News Summary 179

Coinbase Creates New Crypto Lending Service Geared Toward Large Investors, FASB Says Crypto Assets Should Be Marked at Current Values, & more

Sep 07, 2023

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Coinbase Creates New Crypto Lending Service Geared Toward Large Investors

Coinbase (COIN) has created a new crypto lending service in the U.S. for institutional clients, helping fill the void left by the blowups of firms like Genesis and BlockFi.
The platform was quietly revealed in a U.S. Securities and Exchange Commission filing on Sept. 1, which showed $57 million had already been raised for the program.
According to a person familiar with the matter, clients can lend Coinbase money – predominantly crypto assets – and get collateral exceeding the value of the loan. Such overcollateralization acts as a safeguard from disaster.
Coinbase can then turn around and make secured loans to institutional trading clients – akin to the prime brokerage service banks provide in traditional finance, the person familiar said.

"With this service, institutions can choose to lend digital assets to Coinbase under standardized terms in a product that qualifies for a Regulation D exemption," a Coinbase spokesperson said in a statement. "Coinbase is working to update the financial system that was built over 100 years ago, leveraging crypto to provide people with more economic freedom and opportunity. To advance this purpose, Coinbase is building the most trusted crypto products and services, and supporting other builders to bring 1 billion people into crypto."

Full Article

FASB Says Crypto Assets Should Be Marked at Current Values

The first U.S. accounting rule specifically for cryptocurrency will say that companies must use a fair-value approach that would demand certain digital assets be measured at what they would trade for in the markets, according to the Financial Accounting Standards Board (FASB).
At a Wednesday meeting, the board evaluated comments on the change and gave staff permission to draft a final version of the new accounting standard, effective for fiscal years starting after December 15, 2024. The final language is expected to be approved in a written vote before the end of the year.

“I think we heard overwhelmingly from investors that allocate capital based on the use of financial statements that this will provide them better information to make their decisions, and so I’m fully supportive of it,” said Richard Jones, the board’s chairman.

Full Article

Standards Board Approves Long-Sought Change in Crypto Accounting Rules

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