Coinbase exchange has announced the launch of USDC rewards, which will allow eligible US customers to earn 1.25% Annual Percentage Yield (APY) on their USDC holdings. USDC is the stablecoin used on Coinbase’s platform.
Eligible customers will begin earning rewards on their USDC holdings straight away, with rewards being distributed on a monthly basis. The percentage rate of rewards is the same, regardless of the balance. Customers can hold more USDC to accumulate more rewards, without any additional costs or fees.
According to the exchange, USD Coin rewards accrue daily, and customers will maintain complete control over their USD Coins at all times.
Coinbase stated in its blog, “USDC Rewards is a way for Coinbase customers to earn a return on USD Coin holdings without having to sell or transact any cryptocurrency. In line with Coinbase’s mission to make crypto accessible to everyone, USDC Rewards will enable more customers to take advantage of stablecoin rewards, simply and easily.”
According to Coinbase director of product Max Branzburg, who spoke to CoinDesk, a 1.25% interest rate on holdings of US Dollars is 15 times more than the national average or what people might get through a savings account.
Incidentally, Coinbase Commerce allowed businesses to accept payments in USDC earlier this year. The stablecoin was launched on the platform in October 2018.
(Image Credit: Coinbase blog)