Coinbase discards crypto lending program plans

File Photo: The logo of Coinbase Global Inc, the largest cryptocurrency exchange in the United States, will be displayed on April 14, 2021, such as at 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 yield USD Coin (USDC) lending program, the crypto exchange said in a blog post.

The move will take place a few days after US regulators say they will sue Coinbase for a program that allows users to lend digital assets to attract attention.

“We made the difficult decision not to start the USDCAPY program as we continue to pursue regulatory clarification across the crypto industry,” said Coinbase’s blog post. (Https://bit.ly/3tVaUuw)

USDC is a stablecoin fixed to the US dollar and can be redeemed for 1 dollar on a one-to-one basis.

Cryptocurrency exchanges also said they have abolished the waiting list for high-yielding USDC APY programs that replace traditional savings accounts that pay USDC lenders 4% APY.

Coinbase, which said it has seen an increase in cryptocurrency accounts recently, planned to provide a principal guarantee to USDC lenders with its Coinbase account.

Based on a June 2021 survey by Bankrate.com on US savings accounts, USDC’s 4% APY added that it would offer clients eight times the national average of high-yielding savings accounts.

(Report by Sohini Podder in Bangalore, edited by Shailesh Kuber)

Coinbase discards crypto lending program plans

Source link Coinbase discards crypto lending program plans

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