Coinbase is making headlines due to the latest announcement. The crypto exchange revealed that it is raising $2 billion through a debt offering despite receiving lawsuit threats from the U.S. SEC.
The crypto exchange said that the offering will be used for “general corporate purposes as well as investment in product development, potential mergers and acquisitions of products and technologies.”
“This capital raise represents an opportunity to bolster our already strong balance sheet with low-cost capital.”
It’s also important to note the fact that the firm initially aimed to raise $1.5 billion, but Reuters reports that it increased the offering by an additional $500 million due to market interest.
Coinbase made sure to reveal the fundraising plan at a time when the SEC has warned that it will file a suit against the exchange if it pushes through with a plan to launch Lend.
Just in case you don’t know, this is a financial product that will allow users to earn interest by lending out their digital assets.
The government regulator said that the program involves a security, but Coinbase disagrees.
“Coinbase’s Lend program doesn’t qualify as a security – or to use more specific legal terms, it’s not an investment contract or a note. Customers won’t be ‘investing’ in the program, but rather lending the USDC they hold.”
Make sure to check out all the available details in the official post made by Coinbase.
Coinbase in the news
Back in August, it was revealed that according to the latest reports, it seems that USDC, which was launched by Coinbase and Circle, will not be backed by US dollars only.
Coinbase president and COO Emilie Choi said that all of the firm’s USDC reserves would be backed by a combination of cash and short-duration US Treasury bonds starting September.
This announcement comes after it’s been said that not all the USDC were backed by US dollars held in a bank account.