Coinbase is making a play for the institutional lending market with two new yield-generating products built into its Prime platform. The offerings, PrimePlus and Agency Lending, are designed to let institutions and high-net-worth clients earn passive income on their crypto holdings without having to manage borrower relationships themselves.
How PrimePlus and Agency Lending actually work
PrimePlus offers structured USDC lending with seven different notice periods: 2, 7, 14, 30, 90, 180, and 360 days. The longer you commit your capital, the more you earn, with yields scaling up to 5.5% for the longest lock-up periods.
Agency Lending facilitates passive income generation across more than 90 digital assets. Coinbase acts as the intermediary, matching client assets with a network of institutional borrowers that the company has vetted in advance. Clients don’t need to do any of the due diligence on borrowers themselves. Coinbase handles the matching, the risk assessment, and the ongoing management.
Risk management is the real story
