Coinbase announced in a tweet on June 15 that it has increased the rewards on USDC to 4%. This marks a significant improvement from the previous rate offered by the company on USD Coin (USDC), effectively doubling the returns for users.
Until June 9, customers purchasing or holding USDC in a Coinbase account could only earn 2% rewards, as stated on the company’s website. However, Coinbase clarified that reward rates are subject to change and urged customers to check their account for the most up-to-date rates. It is worth noting that the latest version of the public USDC page on Coinbase’s website does not yet reflect the new 4% reward rate. For detailed information on the reward program, including eligible regions, minimum USDC balances, and account requirements, customers can refer to Coinbase’s help pages.
Coinbase recently faced charges from the Securities and Exchange Commission (SEC) related to alleged violations of securities offerings. One of the charges involved Coinbase’s staking service, which allows users to earn interest on cryptocurrency. The SEC claimed that this service constituted an unregistered securities offering.
To differentiate the USDC rewards program from the targeted services mentioned in the SEC case, Coinbase explicitly states on its page that users cannot stake USDC but may be eligible to earn rewards on it. Although the SEC did not specifically target Coinbase’s USDC reward program in its case, the regulator did prevent the company from launching its Lend program in 2021. The proposed Lend program aimed to lend out users’ USDC to provide rewards and was also intended to offer a 4% annual percentage yield (APY) interest rate.
Notably, Coinbase funds its USDC rewards program using its own funds. The company is a member of the CENTRE consortium, which bears responsibility for USDC.