Coinbase Drops Crypto Lending Program Plans

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The logo of Coinbase Global Inc, America’s largest cryptocurrency exchange, is displayed on the jumbotron Nasdaq MarketSite and others in Times Square in New York, United States, April 14, 2021. REUTERS / Shannon Stapleton

September 20 (Reuters) – Coinbase Global Inc (COIN.O) has abandoned plans to start an interest-bearing USD coin lending program (USDC), the cryptocurrency exchange said in a blog post.

The move comes days after US regulators said they would sue Coinbase if it continues its program that allows users to earn interest by lending digital assets. Read more

“As we continue our work to seek regulatory clarity for the crypto industry as a whole, we have made the difficult decision not to launch the USDC APY program,” the Coinbase blog post said. (https://bit.ly/3tVaUuw)

USDC is a stablecoin pegged to the US dollar and can be traded for $ 1 on an individual basis.

The crypto exchange also said it has removed the waitlist for its USDC APY (Annual Percentage Return) program, a high-yield alternative to traditional savings accounts that would have paid USDC lenders. at Coinbase an APY of 4%.

Coinbase, which said it has seen an increase in the crypto interest account lately, had planned to offer USDC lenders a primary collateral in their Coinbase account.

He added that a 4% APY on USDC would provide a client with eight times the national average on high yield savings accounts, based on a Bankrate.com survey of savings accounts. Americans in June 2021.

Report by Sohini Podder in Bengaluru; Editing by Shailesh Kuber

Our Standards: Thomson Reuters Trust Principles.

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