Coinbase to Reward Users for Holding USD Coin
According to an official blog post by Coinbase on October 2nd, all US citizen, USD Coin (USDC) holders will receive a 1.25% APY reward. This incentive was launched to encourage users to hold their cryptocurrency.
USDC is a stable coin that is backed by the US dollar. For every $1 you can buy one USDC and store it on the Coinbase platform. Recently, CENTRE, the company co-founded by Coinbase and creator of USD Coin announced it had issued over one billion USDC. With this in mind, Coinbase thought it necessary to reward its users for such an occasion. The rewards are as follows:
- Earn more. Get a 1.25% APY reward for holding USD Coin on Coinbase.
- Save where you trade. It takes four to five days to transfer between your bank and typical crypto brokerages, when you want to switch between saving and trading. Now you can do both in the same place on Coinbase, instantly.
- Safety. Coinbase does not lend or manage your USD Coins. Your crypto is yours and always stays in your account. You simply earn while storing your crypto safely on Coinbase.
- Real-time. Watch your earnings increase in real-time. Get a taste of the future of money today.
This simple but effective initiative allows Coinbase customers to earn a return on USDC holdings easily without having to sell or move any currencies. Coinbase stated that:
“Earning rewards on your USD Coins is simple. Eligible customers will begin earning rewards on any USD Coins they currently hold on Coinbase, with rewards being distributed on a monthly basis. The percentage rate of rewards is the same no matter your balance. The more USD Coins you hold, the more rewards you will automatically earn, all with no additional costs or fees. USD Coin rewards accrue daily, and customers will maintain complete control over their USD Coins at all times.”
All Coinbase users can purchase USD Coins with a bank account, also allowing for the conversion of USDC for any support cryptocurrencies on the Coinbase platform.