Coinbase has suspended its USDC lending program

The decision appears to be final as the product's waiting list has also been discontinued.

Coinbase (NASDAQ:) has announced that its USDC lending plan will not be available to customers despite previous launch plans.

Coinbase Lending Canceled

The company announced the cancellation by retitling and updating a blog post originally published in June.

In this post, Coinbase states that as of September 17th it is “not launching the USDC APY program.” It called this a "difficult decision" and said it will "turn [its] work on what comes next."

Coinbase also said it has ended the waitlist for the program, which had attracted thousands of users.

Despite the seeming finality of the decision, the announcement was made quietly. The company did not announce the cancellation on Twitter (NYSE:) or create a blog post dedicated to the news.

SEC threat likely caused cancellation

Coinbase reported on September 7 that the SEC planned to sue over its USDC trading product. CEO Brian Armstrong spoke out on Twitter against the SEC's actions, but those statements appear to have had little impact given last week's cancellation.

The company's share price lost 3.55% of its value today, a figure well above that of stock indices such as the S&P500 (down 1.70%) and the Dow Jones (down 1.78%).

Had Coinbase Lend gone live, it would have provided investors who deposited their USDC holdings with an annual return of up to 4%.

The product page now redirects to the Coinbase homepage.