Cryptocurrency exchange, Coinbase, allows you to get rewarded for holding USDC.
According to Coinbase’s blog post, eligible US customers can now earn 1.25% annual percentage yield (APY) on every USD Coin held on the exchange. Accordingly, Coinbase wants to ensure that users have more legal and secure crypto usage options than simply trading.
“We’re trying to build more ways for customers to grow their wealth on Coinbase,” product manager, Paul Katsen said.
Benefits to reap?
The USDC Rewards program will make the USDC better and distributions will be monthly. The percentage rate of rewards is the same irrespective of the amount.
Also, interested customers can purchase USDC with a bank card, while Coinbase customers can convert their USD Coins into any crypto available on Coinbase.com.
The major benefit is customers will be able to earn more. Thus, customers get a 1.25% APY reward for holding USD Coin on Coinbase.
Additionally, customers can save as they trade as both can instantly be done on Coinbase. Thus, saving time.
Safety is guaranteed as the exchange doesn’t lend or manage USD Coins. Users’ crypto always stays in their account.
Finally, users will be able to watch their earnings increase in real-time.
A brief overview of USD Coin (USDC)
The USDC is a stablecoin, which is backed by a reserve asset. The coin maintains a stable price because users can always convert one USD Coin to one US dollar. Therefore, the coin has both the stability and functional benefits of crypto. Since users can make instant transfers for free and keep it in safe custody without a financial intermediary.
CENTRE Consortium, co-founded by Coinbase alongside Circle are the only organizations that can issue the USD Coin. They recently announced they have issued over one billion of them.
In May, Coinbase announced the launch of the USDC. Coinbase Pro and Coinbase Consumers will host trading along with 85 countries. Besides, the San Francisco-based crypto exchange has also disclosed that it is contemplating listing about 17 different digital currencies.