Coinbase Raises USDC Interest Rate to 6% Amidst Declining Supply


18 Nov 2023 12:51 PM

Several Coinbase users have reported an increase in the interest rate the platform offers for the USDC stablecoin....

  • Coinbase is offering up to a 6% interest rate on USD Coin (USDC) held on its platform.
  • The interest rates on USDC have been progressively increasing, starting from 2% and now reaching 6%.
  • The elevated 6% rate applies only to the initial $250,000 USDC, while subsequent holdings revert to a 5% interest rate.
  • There are disparities in the interest rates displayed on users' dashboards, with some experiencing rates as low as 0.58% and others maintaining up to 5% APY.
  • The difference in rates might be linked to the amounts held in Coinbase and the comparison with other staking pools.
  • The compliance status of Coinbase's USDC rewards program concerning federal securities law remains uncertain, despite the recent charges filed against Coinbase by the SEC.
  • The circulating supply of USDC has decreased rapidly over the past year, reaching its lowest level since 2021 at under 25 billion.
  • The decrease in supply started when USDC faced challenges due to its exposure to the US banking crisis, with Circle, the issuer, holding some USDC reserves at a failed bank.
  • Despite market conditions improving, USDC's market share continues to decline.

The sentiment of the article is mostly neutral, with a focus on providing information about Coinbase's interest rates on USDC, disparities in rates, compliance concerns, and the decrease in USDC's circulating supply.

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You May Ask

What interest rate does Coinbase offer on USD Coin (USDC)?How have the interest rates on USDC changed over time?What is the difference in interest rates for the initial $250,000 USDC and subsequent holdings?Why are there disparities in the interest rates displayed on users' dashboards?What is the current circulating supply of USDC and how has it changed recently?

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