Now, simply holding USDC in Coinbase Wallet can earn up to 4.7% interest per year. However, not everyone is eligible for these rewards. What do you need to know?
USDC on Coinbase Wallet can now earn 4.7% returns per year
Wednesday, Coinbase Wallet teams launched USDC Rewardsa new program to reward stablecoin holders within the application. Indeed, eligible users only need to hold the asset in their portfolio, in order to generate the equivalent of 4.7% compound returns per year.
💡 What is our opinion on the Coinbase crypto platform?
To do this, you must first associate your Coinbase account with your Coinbase Wallet, and the rewards will then be paid monthly on layer 2 Base:
Grow your USDC in Coinbase Wallet from almost anywhere in the world without middlemen or high fees. Rewards are paid monthly, directly to your wallet on Base.
However, not everyone will be eligible for these rewards. Currently, only residents of the United States are affected as of this week. In France and in the European Union more generally, this new feature is for example not (yet?) available, probably due to the upcoming entry into force of the MiCA regulation.
Although rewards are only paid on Base However, at present, several blockchains are eligible. So, this concerns USDC present on Ethereum, Arbitrum, Avalanche, Polygon, Optimism, and of course, Base. As for how the yield is generated, Coinbase does not appear to have shared any details on this yet.
👉 Also in the news — Bitcoin (BTC): Coinbase announces the end of WBTC on its platform
With this new feature, it could help to reduce the capitalization gap between USDC and its competitor USDT. In terms of adoption, where the former accounts for just under 20% of the stablecoin market share, USDT represents almost 68.5%.
Coinbase: register on the most famous crypto exchange in the world
Source: Coinbase
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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