JUST

USDC

Security

Rewards

<p class="is-style-lead">Coinbase has reportedly increased interest rates on USDC holdings to 5%, marking a notable improvement from the 4% rate introduced earlier in the year.&nbsp;</p> 
<p>The San Francisco-based crypto exchange hiked the interest offered to holders of its USD Coin (<a href="https://crypto.news/price/usd-coin/" target="_blank" rel="noopener noreferrer nofollow">USDC</a>) to 5%, only months after effecting another <a href="https://crypto.news/coinbase-raises-usdc-rewards-to-4-amid-sec-regulatory-scrutiny/" target="_blank" rel="noopener noreferrer nofollow">increase</a> that doubled the stablecoin’s annual percentage yield from 2% to 4%.</p> 
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   <p lang="en" dir="ltr">JUST IN:<br><br>Coinbase are increasing the interest rate for their stablecoin, USDC, to 5%.</p>— Whale (@WhaleChart) <a href="https://twitter.com/WhaleChart/status/1700886351447548379?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 10, 2023</a> 
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<p>Rewards for holding such coins are regulatory compliant. The increments have all come following the U.S. Security and Exchange Commission’s (SEC) <a href="https://finance.yahoo.com/news/crypto-dodges-bullet-usdc-not-140239886.html" target="_blank" rel="noopener noreferrer nofollow">confirmation</a> that stablecoins, such as USDC, are not regarded as unregistered securities offerings. </p> 
<p>Usually, Coinbase’s reward rates are subject to change, and the most recent rates may be seen in user accounts. The 5% annual percentage yield (APY) has not been added to the most recent edition of the company’s public USDC page. However, one observer user who goes by the X handle “The Utility Bull” shared a screenshot apparently showing the increase is being reflected on customer accounts.</p> 
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   <p lang="en" dir="ltr">Coinbase has recently made changes to their interest rates for <a href="https://twitter.com/search?q=%24USDC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$USDC</a>.<br><br>They are now offering a 5% APY on <a href="https://twitter.com/search?q=%24USDC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$USDC</a> holdings. <br><br>This move by <a href="https://twitter.com/coinbase?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@Coinbase</a> aims to provide users with a competitive interest rate option for their stablecoin investments and savings.<a href="https://twitter.com/hashtag/coinbase?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#coinbase</a> <a href="https://twitter.com/hashtag/APY?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#APY</a> <a href="https://twitter.com/hashtag/USDC?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#USDC</a>… <a href="https://t.co/Ng5YMJ2dYd" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/Ng5YMJ2dYd</a></p>— The Utility Bull (@TheUtilityBull) <a href="https://twitter.com/TheUtilityBull/status/1700918869332795816?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 10, 2023</a> 
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<p> You might also like: <a href="https://crypto.news/visa-tests-usdc-settlement-payments-on-solana-blockchain/" rel="noopener noreferrer nofollow"> Visa tests USDC settlement payments on Solana blockchain </a> </p> 
<h2 class="wp-block-heading" id="strong-is-usdc-playing-catch-up-strong"><strong>Is USDC playing catch-up?</strong></h2> 
<p>Many observers feel the interest hike may indicate Coinbase’s intention to increase USDC adoption, which is markedly <a href="https://crypto.news/usdc-market-cap-hits-two-year-low-even-after-coinbase-stake/" target="_blank" rel="noopener noreferrer nofollow">lower</a> than its rival, Tether (<a href="https://crypto.news/price/tether/" target="_blank" rel="noopener noreferrer nofollow">USDT</a>).&nbsp;</p> 
<p>According to <a href="https://ccdata.io/reports/stablecoins-cbdcs-report-july-2023" target="_blank" rel="noopener noreferrer nofollow">CCData</a>, Tether recorded an all-time high market capitalization of $83.8 billion, giving it a 65% hold on the stablecoin sector. Currently, USDT has a market cap of about $83 billion with a market dominance of 67.3%, whereas USDC is valued at $26.15 billion and controls 22.19% of the stablecoin market, per information from CoinGecko.</p> 
<p>USDC has had a rough 2023, mainly when $3.3 billion of its reserves were momentarily <a href="https://crypto.news/silicon-valley-banks-troubles-put-circles-3-3b-usdc-reserve-at-risk/" target="_blank" rel="noopener noreferrer nofollow">stuck</a> at Silicon Valley Bank, which <a href="https://crypto.news/silicon-valley-bank-collapsed-here-are-the-companies-affected/" data-type="link" data-id="https://crypto.news/silicon-valley-bank-collapsed-here-are-the-companies-affected/" rel="noopener noreferrer nofollow">collapsed</a> earlier this year, causing the stablecoin to detach from its dollar peg briefly.</p> 
<p>But despite the woes that led to a market cap decrease, Circle CEO Jeremy Allaire <a href="https://finance.yahoo.com/news/circle-wanted-create-financial-revolution-110000252.html" target="_blank" data-type="link" data-id="https://finance.yahoo.com/news/circle-wanted-create-financial-revolution-110000252.html" rel="noopener noreferrer nofollow">believes</a> the stablecoin is showing signs of gaining momentum.</p> 
<p>Coinbase recently bought a <a href="https://www.cnbc.com/2023/08/22/coinbase-takes-stake-in-stablecoin-firm-circle-shuts-down-usdc-consortium.html#:~:text=Tech-,Coinbase%20takes%20stake%20in%20stablecoin%20firm%20Circle%2C%20shuts%20down%20joint,as%20it%20sees%20'regulatory%20clarity'&amp;text=Cryptocurrency%20exchange%20Coinbase%20is%20taking,private%20governance%20organization%20for%20USDC." target="_blank" rel="noopener noreferrer nofollow">stake</a> in Circle, paving the way for the dissolution of the Center consortium, which was previously responsible for the management of USDC.</p> 
<p> Read more: <a href="https://crypto.news/circle-rolls-out-usdc-stablecoin-on-base-and-op-mainnet/" rel="noopener noreferrer nofollow"> Circle rolls out USDC stablecoin on Base and OP Mainnet </a> </p>

Coinbase increases USDC interest rate after SEC confirms stance on stablecoins

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