does coinbase pay interest on usdc

Coinbase enables users to earn interest on their USDC holdings through interest-bearing accounts, further enhancing the appeal of this stablecoin as a passive income generator.

Oct 29, 2024 at 07:00 am

Does Coinbase Pay Interest on USDC?

Yes, Coinbase offers interest-bearing accounts for USDC

1. Eligibility: Coinbase interest-bearing accounts are available to eligible customers in most countries.

2. Interest Rates: The current annual percentage yield (APY) for Coinbase's USDC interest-bearing accounts is as follows:

   • 0.15% for balances up to $100,000
   • 1.00% for balances over $100,000
3. Compounding Frequency: Interest is compounded daily, which means you earn interest on your initial deposit and on the interest you have earned previously.
4. Minimum Balance: There is no minimum balance requirement for Coinbase's USDC interest-bearing accounts.
5. Transaction Fees: There are no fees for depositing or withdrawing USDC from your Coinbase interest-bearing account. However, Coinbase may charge a fee if you convert your USDC to another currency or withdraw it to a non-Coinbase address.
6. Insurance: Coinbase US dollar cash balances are insured by the FDIC up to $250,000 per depositor. This insurance does not apply to cryptocurrency assets, including USDC.

How to Earn Interest on USDC with Coinbase

1. Create a Coinbase account: If you don't already have a Coinbase account, you can create one for free on the Coinbase website or mobile app.
2. Deposit USDC into your Coinbase account: You can deposit USDC into your Coinbase account by buying it with your bank account, debit card, or credit card. You can also transfer USDC from another cryptocurrency wallet.
3. Enroll in the Coinbase Earn program: Once you have USDC in your Coinbase account, you can enroll in the Coinbase Earn program to earn interest on your USDC. To enroll, click on the "Earn" tab in the Coinbase website or mobile app and select the "USDC Earn" option.
4. Start earning interest: Once you are enrolled in the Coinbase Earn program, you will start earning interest on your USDC balance daily. The interest will be added to your Coinbase account balance each day.

Conclusion

Coinbase offers interest-bearing accounts for USDC, allowing you to earn passive income on your cryptocurrency holdings. The process of earning interest on USDC with Coinbase is simple and straightforward. You can easily deposit USDC into your Coinbase account, enroll in the Coinbase Earn program, and start earning interest today.