The product’s waitlist has also been discontinued, indicating that the decision is definite.
Despite initial intentions, Coinbase has confirmed that its USDC lending strategy would not be offered to consumers.
Lending on Coinbase has been canceled.
The cancellation was announced by re-titling and revising a blog post that was initially published in June.
Coinbase states in that article that it is not starting the USDC APY program as of September 17. However, it described this as a tough decision and promised to focus [its] work on what comes next.
Coinbase also announced that the program’s waitlist, which had attracted thousands of participants, had been canceled.
The news was made softly, despite the seeming finality of the decision. The cancellation was not publicized on Twitter, nor was there a blog post dedicated to the news.
A threat from the SEC most likely caused the cancellation.
The Securities and Exchange Commission (SEC) said on September 7 that it planned to sue Coinbase over its USDC trading product. On Twitter, CEO Brian Armstrong expressed his displeasure with the SEC’s actions, but such remarks appear to have had little impact in light of last week’s cancellation.
The company’s stock price dropped 3.55%, far more than stock indices such as the S&P500 (down 1.70%) and the Dow Jones Industrial Average (down 1.78%).
Investors who deposited their USDC assets would have received up to a 4% yearly return if Coinbase Lend had gone live.
Coinbase’s main page now links to the product page.