Reuters - Coinbase Global Inc said in a blog post that the idea to launch an interest-rate-paying USD coin had been withdrawn, the cryptocurrency exchange said in a blog post.
The move came days after the US regulators said it would sue Coinbase if it refused to let its program of users earn interest by lending digital assets.
As we pursue our efforts to seek regulatory clarity for the crypto industry as a whole, Bitcoin's blog post said that Coinbase made the difficult decision not to launch the USDC APY program. https: bit.ly 3 1tVaUuw USDC is a stablecoin that can be redeemed to the U.S. dollar and can be pegged for $1 on a one-to-one basis.
The crypto exchange also said it had discontinued the waitlist for its USDC APY annual percentage yield program, a high-yield alternative to traditional savings accounts that would have paid lenders of USDC a 4% APY to Coinbase.
Coinbase, which said it has seen a rise in the crypto interest account in recent times, had been planning to offer a prime guarantee to lenders of USDC in their Coinbase account.
It added that a 4% APY on USDC 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.