The recognized crypto platform Coinbase is launching a new reward program that would allow users to start earning 1.25% APY on their USD Coin (USDC) holdings. The information was released by Coinbase in a blog post a few hours ago.
Coinbase Users To Start Earning 1.25% APY
Coinbase is working to increase crypto usage in the space. The platform wants to deliver more ways for individuals to legally and securely do more with their crypto, beyond trading.
The new program is called USDC Rewards and it will only be available to eligible to US customers. That means that not every single Coinbase user is going to be able to earn 1.25% APY on their USDC holdings.
USD Coin is a stablecoin backed by the U.S. dollar created by CENTRE a consortium created by both Circle and Coinbase. The virtual currency maintains a stable place because users can redeem it for a US dollar. Users can also easily send it around the world for free without a financial intermediary.
One of the advantages of having this new solution is that users will be able to switch between saving and trading instantly.
Coinbase explains that it takes four to five days to transfer between a bank and a typical crypto brokerage. Using Coinbase and the USDC stablecoin the whole process is now much simpler.
In addition to it, users can see their earnings increase in real-time. This makes things easier for users that want to store their digital currencies on the Coinbase platform and earn a small interest.
At the same time, individuals will not have to sell their cryptocurrencies and exchange them for fiat currencies to earn rewards.
The percentage rate of rewards is going to be the same no matter the balance the user has. The more USD Coins in your account, the more rewards you will receive.
These rewards accrue daily and customers will have complete control over their funds at all times. That allows them to be sure their funds are safe and providing interest.
As mentioned before, this solution is not going to be available for all Coinbase users. Individuals in New York State will not be allowed to participate. Coinbase will be selecting and informing users whether they can participate in this new program.
Moreover, customers will be able to convert their USDC into any supported cryptocurrencies available on Coinbase.com.
Nowadays, USDC is the 23rd largest cryptocurrency in the market with a valuation of $456 million.