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.

Pavan A
CBW - External Analyst
INDIA