Coinbase Paying Interest for USDC Holders! Coinbase paying interest for holders of the popular stablecoin USDC. The interest rate will be 1.25%.
In a blog post posted today, Coinbase said that eligible US customers will begin earning 1.25% on their USDC holdings – earnings will be distributed on a monthly basis. This product will not be available for customers in New York State.
Coinbase has described USDC as a stablecoin that offers price stability via being backed by a reserve asset. USDC was created by CENTRE, a consortium co-founded by Coinbase. Since August of this year, over 1 billion USDC tokens have been issued.
According to the blog post, Coinbase customers will be able to earn a return on their USDC holdings without doing any transactions – including selling or doing anything else with cryptocurrency. Coinbase has acknowledged that the USDC is not legal tender but is a form of digital currency.
For your sake, it’s important to note that USDC holdings are not protected by Federal Deposit Insurance Corporation (FDIC) or Securities Investor Protection Corporation (SIPC).
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