According to the source, Coinbase monetizes Bitcoin (BTC)-backed lending primarily by offering Coinbase Prime financing and institutional custody as a technology and prime-brokerage service, generating fee income tied to financing workflows and asset custody rather than retail lending (source: Coinbase Prime Financing product page; Coinbase 2023 Form 10-K). Coinbase discontinued its retail Coinbase Borrow product in 2023, signaling a shift away from direct-to-retail BTC-collateral loans (source: Coinbase Help Center, About Coinbase Borrow retirement). For institutions, Coinbase Credit, Inc. filed a Form D with the U.S. SEC for an institutional lending program, while Coinbase Prime provides collateral management, margining, and liquidation tooling with third-party lenders—structures that can support recurring fee revenue on custody and financing (source: SEC Form D for Coinbase Credit, Inc.; Coinbase Prime Financing documentation). For traders, greater availability of BTC-backed credit tends to increase market leverage and volatility—impacting basis and liquidation dynamics—so tracking Coinbase’s Subscription and Services revenue mix alongside institutional activity can inform positioning in COIN and BTC (source: BIS Quarterly Review 2022 on leverage and crypto market volatility; Coinbase quarterly shareholder letters).