Crypto News- Several Coinbase users have reported that the exchange is now offering an impressive 6% interest rate on any USD Coin (USDC) held on its platform.
Coinbase Announces 6% Interest Rate on USDC as Supply Shrinks
In recent months, Coinbase has steadily increased the interest rates on USDC, starting from a modest 2% and gradually reaching the newly established 6%. Tom Dunleavy, CIO and partner at MV Capital shared a screenshot of a Coinbase email revealing that the elevated 6% rate applies exclusively to the initial $250,000 USDC. Any subsequent holdings would revert to a still attractive 5% interest rate.
Users have pointed out discrepancies in the interest rates displayed on their dashboards. While some observed rates as low as 0.58%, others maintained rates as high as 5% APY. Dunleavy suggested that these differences might be linked to the amounts held in Coinbase and emphasized the distinctions among other staking pools.
“As many people have mentioned, you can get much higher yields on-chain. It’s all a personal choice if it’s worth the trade-offs. I am very happy with these yields versus getting 10-20% LPing a pool with several risks not present here,” commented Dunleavy.
Despite recent charges filed by the US Securities and Exchange Commission (SEC) against Coinbase, alleging various violations related to securities offerings, the SEC’s charges did not explicitly address the specific implications of Coinbase’s USDC reward program. Consequently, the compliance status of Coinbase’s ongoing USDC rewards program concerning federal securities law remains uncertain.