Coinbase launches high-yielding USDC accounts with 4% APY – Bitcoin News
Coinbase, the largest exchange in terms of crypto reserves held, has announced the launch of a usd coin-linked savings program. The company’s high yield USDC savings program allows customers to earn 4% APY interest on stablecoin accounts.
Coinbase unveils USDC savings program with interest rates eight times higher than the national average
The cryptocurrency exchange Coinbase announced the pre-registration for their USDC savings program (USDC), which allows customers to earn an interest rate of 4% APY for USDC on the platform.
Coinbase joins companies like Blockfi and Crypto.com who are already offering interest on USDC stablecoin holdings. Still, in its Tuesday announcement, Coinbase emphasized that 4% APY on USDC is “more than eight times the national average of high-interest savings accounts.”
“Everyone wants to get the best interest rate available on the assets they hold,” Coinbase said in a statement. “But interest rates have been falling steadily over the past few decades, making it difficult to generate meaningful passive income on your assets,” the company said. Coinbase added:
The national average for a traditional savings account is around 0.07%, while high-interest savings accounts are still well below 1%.
Coinbase’s entry into stablecoin savings products also follows Circle’s USDC business product launched in November 2020. Back then, Circle announced the introduction of high yield USDC business accounts with APY up to 10.75%. In addition, Circle announced five days ago that it would be launching a new API to enable companies to connect to high-yield decentralized financial platforms (Defi).
Coinbase and Circle are the founding members of the Center Consortium and, along with a number of other consortium members, Center is the issuer and custodian of the usd Coin (USDC) project.
For more information on Coinbase’s USDC pre-registration, US customers can register on the web portal coinbase.com/lend. After a person gets approval, they will automatically start earning 4% APY on the USDC they hold on their Coinbase account. The company states that “APY can change at any time before you start lending.”
What do you think of Coinbase offering 4% APY on USDC holdings? Let us know what you think on this matter in the comments below.
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