Coinbase Raises USDC Interest Rate to 6% Amidst Declining Supply
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.