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Coinbase scraps plans for crypto lending program

Coinbase says hackers stole cryptocurrency from at least 6,000 customers
Coinbase says hackers stole cryptocurrency from at least 6,000 customers   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p> – Coinbase Global Inc has scrapped its plan to launch an interest-yielding <span class="caps">USD</span> Coin (<span class="caps">USDC</span>) lending program, the cryptocurrency exchange said in a blog post.</p> <p>The move comes days after U.S. regulators said it would sue Coinbase if it went ahead with its program allowing users to earn interest by lending digital assets.</p> <p>“As we continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision not to launch the <span class="caps">USDC</span> <span class="caps">APY</span> program,” Coinbase’s blog post said. (https://bit.ly/3tVaUuw)</p> <p><span class="caps">USDC</span> is a stablecoin that is pegged to the U.S. dollar and can be redeemed for $1 on a one-to-one basis. </p> <p>The crypto exchange also said it has discontinued the waitlist for its <span class="caps">USDC</span> <span class="caps">APY</span> (annual percentage yield) program, a high-yield alternative to traditional savings accounts that would have paid lenders of <span class="caps">USDC</span> to Coinbase a 4% <span class="caps">APY</span>. </p> <p>Coinbase, which said it has seen a rise in crypto interest account in recent times, had been planning to offer a principal guarantee to lenders of <span class="caps">USDC</span> in their Coinbase account. </p> <p>It added that a 4% <span class="caps">APY</span> on <span class="caps">USDC</span> would provide a customer eight times the national average on high-yield savings accounts, based on a Bankrate.com survey of U.S. savings accounts in June 2021.</p> <p/> </div>