Coinbase has announced they will be rewarding users with interest for holding the stablecoin USDC. The annual yield is 1.25% and customers will start earning interest starting Wednesday.
Any user with at least 1 USDC will start automatically earning interest which will be paid out on a monthly basis. The rewards earned can be seen in real-time and can be used at any time as they are not locked.
While the 1.25% interest might seem low, it’s important to note that Coinbase will not lend or manage the USD coins, customers simply earn rewards by holding the stablecoin.
According to the official announcement by Coinbase, these rewards are a way for Coinbase to help customers earn rewards and make crypto more accessible to everyone.
USDC is backed by US dollars and issued by Coinbase itself. The USD Coin is an ERC-20 token created on the Ethereum blockchain. Its main mission is to help dollars move globally from cryptocurrency wallets to other exchanges, etc.
Buying USDC is really easy and anyone registered on Coinbase can buy the stablecoin at a rate of $1 per USDC. Users can also buy USDC from other exchanges like Poloniex or Binance and transfer them back to Coinbase to start earning rewards.
The USDC stablecoin can be used with bitpay, centrifuge and many more payment platforms including the Coinbase commerce platform.
Our mission is to build an open financial system for the world. As part of this mission, we want everyone to enjoy the stability of the world’s fiat currency, the US dollar.