CMC News

$USDC Yields 4.1% APY in #New Coinbase Business Platform

Coinbase has introduced a financial platform allowing small and medium-sized businesses to receive cryptocurrency, manage digital assets, and earn yields on #stablecoin holdings. The San Francisco exchange announced #Coinbase Business on Thursday, positioning the service as an all-in-one solution for business crypto operations.

Companies holding $USDC balances in Coinbase Business accounts will earn 4.1% APY, with the ability to cash out on demand to linked bank accounts via Wire or ACH. The platform integrates with accounting software QuickBooks and Xero through connections with CoinTracker, enabling businesses to adopt crypto payments while maintaining compliance.

The exchange operates under a 50/50 revenue split with #Circle regarding yield earned from $USDC, the second-largest stablecoin with a $76 billion market cap. Coinbase holds a major stake in Circle, which became a public company earlier this year, and receives half of all revenue from interest earned on cash reserves backing the stablecoin.

Onboarding for Coinbase Business follows a fully self-service model, with most applicants receiving approval within two days. The platform offers instant crypto settlements, multi-user access, and seamless API integrations designed to help businesses scale efficiently.

Sid Coelho-Prabhu, Coinbase's senior director of product management, stated that startups and small businesses face challenges from slow payments, high fees, and outdated banking systems. The new platform aims to bring the speed and global reach of cryptocurrency to modern #financial operations.

Coinbase Business competes with fintech companies like Mercury and Brex, which offer yield-bearing business accounts, as well as crypto payment processors including BitPay and OpenNode. The company describes the service as a "crypto operating account" that blends functions of a bank, exchange, and payment processor.