FILE PHOTO: The logo of Coinbase Global Inc., the largest cryptocurrency exchange in the United States, is displayed as of April 14, 2021, on the Nasdaq market site Jumbotron in Times Square, New York, USA. Reuters / Shannon Stapleton
September 20, 2021
(Reuters) – Coinbase Global Inc. has abandoned plans to launch a yielding USDC coin (USDC) lending program, the crypto exchange said in a blog post.
The move comes days after US regulators said they would sue Coinbase over a program that allows users to lend digital assets to gain attention.
“We made the difficult decision not to launch the USDCAPY program as we continue regulatory clarifications in the crypto industry,” said Coinbase’s blog post. (https://bit.ly/3tVaUuw)
USDC is a stablecoin pegged to the US Dollar and can be redeemed for $1 on a one-to-one basis.
The cryptocurrency exchange also said that they have eliminated waiting lists for high-yield USDC APY programs that replace traditional savings accounts that pay USDC lenders 4% APY.
Coinbase, which said it has seen a surge in cryptocurrency accounts recently, plans to offer USDC lenders a key guarantee with their Coinbase accounts.
Based on a June 2021 survey by Bankrate.com on US savings accounts, USDC’s 4% APY said it would provide customers with eight times the national average for high-yield savings accounts.
(Reporting by Sohini Poddar in Bangalore, Edited by Shailesh Kuber)
Coinbase Rejects Crypto Lending Program Plans
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