Summary
• Coinbase Advanced, the trading platform for sophisticated traders, is offering up to 4% rewards on USDC held on Coinbase or used in open orders.
• These rewards are higher than the APY rates offered by major banks, including Apple and Capital One.
• This move aims to incentivize more users to utilize Coinbase’s services and store their USDC tokens on the platform.
Introduction
Coinbase, one of the leading cryptocurrency exchanges, has recently announced an exciting development for its customers. The platform’s advanced trading platform, Coinbase Advanced, now offers up to 4% rewards on USDC holdings. This move aims to attract more users to utilize Coinbase’s services and store their USDC tokens on the platform.
Rewards vs Major Banks
The 4% yield on USDC surpasses the APY rates offered by major banks, including Apple and Capital One. Apple introduced a savings account tied to its credit card with a 4.15% APY rate while Bankrate lists Capital One as another major bank offering a similar 4.15% APY rate on its savings account. Coinbase’s 4% yield matches and even exceeds these rates, providing an attractive alternative for investors seeking higher returns from their stablecoin holdings .
Securing Customer Funds
It’s important to note that Coinbase clarifies that these rewards are funded by the company’s own funds and not by lending out customer USDC. This means that customers can rest assured knowing that their assets remain secure and under their control at all times . Additionally , this approach differentiates it from its previous initiative – Coinbase Lend – which faced regulatory challenges due to legal threats from the SEC . Initially , this program planned to offer a 4 % APY reward but was eventually canceled in order to protect customer funds securely held under Coinbase’s custody .
Conclusion
In conclusion , Coinbase ’ s latest move presents an attractive opportunity for traders and investors alike . By offering up to 4 % reward yields on USDC holdings without lending out customer funds , it provides a secure option for users looking for higher returns .