Coinbase Offers 4% Yield on USDC, Outperforming Major Banks

• Coinbase Advanced, the trading platform for sophisticated traders, is offering up to 4% rewards on USDC held on Coinbase or used in open orders.
• The 4% yield on USDC surpasses the APY rates offered by major banks, including Apple and Capital One.

Coinbase, one of the leading cryptocurrency exchanges, recently announced an exciting development for its customers. The platform’s advanced trading platform, Coinbase Advanced, now offers up to 4% rewards on USDC holdings. This move aims to attract more users to utilize Coinbase’s services and store their USDC tokens on the platform. The rewards are available not only for USDC held on Coinbase but also for USDC used in open orders.

It’s important to note that Coinbase clarifies that these rewards are funded by the company’s own funds and not by lending out customer USDC. Coinbase explicitly states that it has no right to use the funds in customers’ accounts. This approach ensures that customers’ assets remain secure and under their own control.

What makes this offering particularly noteworthy is that it outperforms major banks’ APY rates for high-yield savings accounts. Apple, for instance, introduced a savings account tied to its credit card, which offers a 4.15% APY. Additionally, Bankrate lists Capital One as another major bank offering a similar 4.15% APY on its savings account. Coinbase’s 4% yield on USDC matches and even exceeds these rates, providing an attractive alternative for investors seeking higher returns on their stablecoin holdings.

Coinbase’s previous initiative, Coinbase Lend, faced regulatory challenges and was eventually abandoned due to legal threats from the SEC. Initially, Coinbase Lend planned to offer a 4% APY on USDC as a reward to traders. However, the program was canceled, ensuring that customer funds remained securely held under Coinbase’s custody.

The introduction of the 4% yield on USDC without lending out customer funds distinguishes this offering from the previous program. Coinbase emphasizes that these rewards are solely for holding USDC in customers’ Coinbase accounts, providing a separate and secure option for users.

In conclusion, Coinbase’s latest move to offer a 4% yield on USDC holdings through Coinbase Advanced presents an attractive opportunity for traders and investors. With this initiative, Coinbase aims to incentivize more customers to utilize its services and store their USDC tokens on the platform. The 4% yield outperforms major banks’ APY rates, further establishing Coinbase as a competitive player in the cryptocurrency and blockchain industry.

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