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Coinbase scraps plans for crypto lending program By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO – The Coinbase Global Inc logo, which is the largest U.S. cryptocurrency exchange and its headquarters, can be seen on the Nasdaq MarketSite Jumbotron in Times Square, New York. It was displayed there, along with other images, from April 14th 2021. REUTERS/Shannon Stapleton

(Reuters) – Coinbase (NASDAQ:) Global Inc has scrapped its plan to launch an interest-yielding USD Coin (USDC) lending program, the cryptocurrency exchange said in a blog post.

Coinbase’s program that lets users earn interest from lending digital assets, was threatened with legal action by U.S. regulators.

Coinbase posted on its blog that it had made the hard decision to not launch the USDC APY Program as part of our ongoing efforts to find regulatory clarity in the crypto sector. (https://

USDC is a stablecoin that is pegged to the U.S. dollar and can be redeemed for $1 on a one-to-one basis.

Also, the crypto exchange stated that it had ended its waitlist for USDC APY (annual percent yield), a high-yield option to traditional savings accounts. This program would have given lenders of USDC to coinbase a 4.4% annual percentage yield.

Coinbase said that they have seen crypto interest account growth in recent years and had planned to give a guarantee principal to USDC-lenders in the Coinbase account.

According to a Bankrate.com survey, USDC savings accounts had a national average of 4%. This figure was based upon a June 2021 Bankrate.com study.

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