Cryptocurrency exchange Coinbase is partnering with London-based small business finance provider Greengage to launch small-business debt using the Coinbase Diamond protocol. This collaboration aims to utilize blockchain technology to provide funding channels for small and medium-sized enterprises, with the potential to offer more efficient and transparent financing solutions.
Regarding this new agreement, Greengage CEO Sean Kiernan stated, “We are delighted to be partnering with Coinbase on this groundbreaking initiative. By launching small business debt on the Coinbase Diamond protocol, we are not only enhancing our ability to support small businesses, but also pioneering new financial innovations that will drive growth and sustainability in this critical industry.”
The Coinbase Diamond protocol strengthens the issuance and management of private capital. Using blockchain technology, the protocol issues local digital debt, making the process more secure and accessible to a wider range of investors.
In a statement shared with Finance Magnates, this partnership aims to meet critical needs in the small business sector, allowing businesses to access institutional credit markets.
Greengage is a digital financial platform that provides electronic currency account services for small and medium-sized enterprises. Based in London, the company focuses on multi-currency accounts and credit solutions, which it says perfectly complement Coinbase’s digital asset services. In addition to electronic currency account services, Greengage offers a B2B lending platform with digital sources of funding.
Last year, Coinbase launched Project Diamond, a smart contract-driven platform that enables institutions to create and trade digital native assets. As the project prepares to enter the Abu Dhabi Global Market (ADGM) RegLab sandbox, the first debt instrument on the platform has been launched.
Project Diamond utilizes the Coinbase technology stack and the Ethereum Layer 2 blockchain Base to support capital market activities. The platform aims to provide institutions with tools to leverage next-generation financial technology to address the challenges of inefficient asset management.
Furthermore, Coinbase recently enhanced the cryptocurrency transfer process by supporting the sending and receiving of cryptocurrencies.