Coinbase Wallet Lets Users Earn Rewards on USDC Stablecoin

USDC Rewards, announced Wednesday (Nov. 20), lets Coinbase Wallet users earn 4.7% APY just by holding USDC on-chain.

Coinbase Wallet users can now earn rewards for holding USDC.

Coinbase Wallet users can now earn 4.7% APY for holding the USDC stablecoin on-chain, the company announced Wednesday (Nov. 20).

“USDC combines the stability of the U.S. dollar with the power and speed of the internet,” Coinbase stated on its blog. “You can use USDC to send and receive payments to anyone, anywhere, or hold and earn rewards on your money — and it’s designed to be redeemable 1:1 with the U.S. dollar. Because it’s onchain, USDC transactions are settled instantaneously and securely across borders.”

The rewards will be paid out monthly and will be deposited directly into user wallets, according to the blog post. The feature is available in most regions around the world, with U.S. users being offered the service this week.

“Along with earning rewards, you can send USDC on Base instantly and with zero fees,” Coinbase added. “Whether paying a friend via text link or sending funds globally, these onchain transactions are faster and more cost-effective than traditional methods.”

The offering comes as the financial services industry continues to show strong interest in stablecoins, which are being touted for their potential to optimize cross-border payments and provide alternative payment solutions.

This year has seen a slew of partnerships and projects in this sector, which have included the likes of Coinbase, Circle, Visa and PayPal.

“Other payment providers and FinTech companies are integrating stablecoins into their platforms, allowing users to make payments or settle accounts using these assets,” PYMNTS reported in October.

“Major stablecoins like USDC and USDT are compatible with various blockchain networks, enabling interoperability and flexibility in connecting different payment systems. This integration helps facilitate smoother transactions between digital wallets, bank accounts and other payment platforms, creating a seamless user experience.”

In other news this week, the Wall Street Journal (WSJ) reported that President-Elect Donald Trump will be meeting with Coinbase CEO Brian Armstrong to discuss personnel appointments for the new administration.

During his campaign, Trump pledged to form a presidential advisory commission focused on bitcoin and crypto if elected, which would develop transparent regulatory guidance in the sector.

According to the WSJ, Armstrong — whose company has been engaged in a back-and-forth with the U.S. Securities and Exchange Commission (SEC) — has suggested former Trump SEC Commissioner Hester Peirce as the next head of the commission.