On June 15, Coinbase announced in a tweet that it is now offering 4% rewards on USDC. This new rate has approximately doubled the previously offered returns on USD Coin (USDC).
Just a few days prior, on June 9, the company’s website stated that customers could only earn 2% on USDC purchased or held in a Coinbase account.
Coinbase has stated that reward rates are subject to change and can be viewed within customer accounts. However, the company has not added the 4% reward rate to the latest version of its public USDC page.
To learn about the reward program’s requirements, such as eligible regions, minimal USDC balances, and account requirements, customers can refer to Coinbase’s help pages.
The SEC recently charged Coinbase, alleging that several of its activities violate securities offerings. One charge stated that Coinbase’s staking service, which allows users to earn interest on cryptocurrency, constitutes an unregistered securities offering.
Coinbase’s page has distanced USDC rewards from the targeted services, stating: “You cannot stake USDC, but … may be eligible to earn rewards on USDC.”
Although the SEC did not target the company’s USDC reward program in its latest case, the regulator prevented Coinbase from launching its similar Lend program in 2021. This program would have allowed Coinbase to lend out users’ USDC to provide rewards to users and offer 4% APY interest.
However, Coinbase is funding its USDC rewards program with its own funds. The company is a member of the CENTRE consortium, which is responsible for USDC.