Coinbase Global Inc announced in a blog post that its plan to create an interest-bearing USD Coin (USDC) lending program has been canceled.
The move comes only days after US regulators threatened to sue Coinbase if it continued to offer a scheme that allows customers to earn interest by lending digital currencies.
"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 USDC APY program," Coinbase's blog post said.
USDC is a stablecoin that is pegged to the U.S. dollar and can be redeemed for $1 on a one-to-one basis.
The crypto exchange also said it has 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 to Coinbase a 4% APY.
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 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.
Stocks prolonged their losses on Monday, while oil prices surged as investors digested the possibility of even stronger inflation and further damage to the international economy as a result of Russia's campaign in Ukraine and the sanctions that followed.Stocks