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Coinbase is officially launching a DeFi Profit product for users in 70 countries but not the US

In September, the U.S. Securities and Exchange Commission (SEC) vehemently opposed exchanging Coinbase’s proposed DeFi profit program, considering it a direct violation of securities laws.

Although Coinbase has abandoned plans to launch the program in the United States, it has continued to launch its product in 70 other countries.

Coinbase launches DeFi Profits in 70 countries

According to the statement is release On Thursday, the exchange is offering DeFi engagement to customers who want to use their digital assets efficiently. Starting today, users can lend and borrow assets, first the stablecoin DAI.

“DeFi has tremendous potential to empower economic freedom and we are pleased to offer a trustworthy and accessible way to get involved.”

Without a doubt, DeFi has seen tremendous growth this year. However, access to this area is still very limited as it requires a certain amount of engineering that a normal user may have difficulty navigating.

Coinbase seeks to democratize access to DeFi space by presenting its global clients the future of the world financial system that has been predicted by many analysts.

How will it work?

To benefit from Coinbase’s DeFi profitability program, customers in 70 countries will sign up with Stablecoin DAI, which means customers will deposit their DAI with Compound Finance, the leader in decentralized protocols.

It should be noted that the interest rate on this profit product may change from time to time. According to Coinbase, the annual percentage rate (APY) on the DAI supply was between 2.83% and 5.39% in October.

Coinbase announced that it will cover the transaction fees associated with this product. However, they do require users to “make informed investment decisions” as this cannot guarantee that losses will not occur.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.