US-based crypto exchange giant Coinbase Coinbase CFO Alesia Haas said Ethereum (ETH) could be added as collateral in the near future as part of the company’s strategy to expand its lending business.
Haas spoke during the analyst’s recent Q&A Call for the first quarter of 2021 after being asked about Coinbase’s move to increase the Bitcoin Balance (BTC) credit line available to $ 100,000.
In a shareholder dated May 13th letterCoinbase said it has “seen rapid growth in originations” since adding increased credit limits to its BTC-backed loan product.
“We evaluate every coin that we lend against for liquidity. Is there enough liquidity depth on our exchange so that we can potentially liquidate the collateral if we are under collateral? “ said the CFO, adding “Ethereum is very, very close, very open.”
According to the CFO, the company could look to expand collateral to Ethereum in the coming months and quarters.
She noted that Coinbase started its loan program in the fourth quarter of 2020 when a waiting list opened, and the initiative began to expand in the first quarter of this year.
“We are in the earliest days of our portfolio line of credit and the borrow / lend line of products that we hope to introduce. That is why we approach all of our product offerings in a kind of crawl, walk and run style, where we start a small sandpit and continue to expand and invest. “ Said Haas.
In the long term, Coinbase aims to expand the program to include multiple assets that underlie its loans, add more foreign markets, and increase the balances it will lend, the executive said.
When asked about the number of crypto assets that Coinbase users can deploy with, Haas admitted that this is “not available for a very large number of assets”.
“Today we offer it for four different assets, but we are seeing a trend in more and more new cryptocurrencies that are being introduced as proof of use per call. When these are introduced, we will offer to bet on an increasing number of assets in the future. “ She said.
In the letter to shareholders, the company commented on the staking, saying it now has “over a million customers who are making returns by wagering their fortunes on six different assets with Coinbase.”
“In the first quarter, we announced our plan to offer 6% APR on the staked ETH2, an updated version of Ethereum, the second largest capitalization crypto asset.” the letter said.