Crypto exchange Coinbase introduces high-interest DeFi yields
Coinbase, a cryptocurrency
exchange company, announced that its customers in over 70 countries will now be
able to earn a yield on their cryptocurrency holdings. Through DeFi, eligible
customers in many countries can now earn yield.
According to a statement by Coinbase, “We are making DeFi more accessible, enabling eligible customers in more than 70 countries to access the attractive yields of DeFi lending on their DAI with no fees, lockups, or set-up hassle.”
After threatening legal action over Coinbase's proposed Lend service in early September, the Securities and Exchange Commission killed Coinbase's plans for DeFi in the U.S. With lend, investors would have been able to earn interest on USDC stablecoins. But regulators rejected the idea.
Coinbase will now offer customers in over 70 countries the opportunity to earn "attractive yields" on decentralized finance by letting them deposit a stablecoin called Dai into Compound Finance, that uses DeFi.
As of now, users can buy DeFi yields in the U.K., Germany, Spain, and many other countries. The firm plans to expand its DeFi offerings to countries where they are still unrestricted or unregulated.
In addition to its role as a centralized exchange, Coinbase is dedicated to serving as a bridge between its users and the rapidly expanding world of decentralized finance applications, which is an objective in which Chief Executive Officer Brian Armstrong believes strongly.
A blockchain-based lending platform— DeFi, enables individuals to borrow, lend, and trade without the assistance of a centralized intermediary. It is among the most popular applications of cryptocurrencies and blockchain technology.
Many analysts view decentralized finance (DeFi) as a volatile and risky sector due to the absence of centralized intermediaries. While these apps typically offer high yields, investors should be beware of the possible loss when investing in them.
CBW - External Analyst