Coinbase offering 4% yield on USDC held by customers, rivaling major banks

Coinbase Advanced will also have access to the 4% rewards for USDC held on the platform or in open orders

article-image

FOTOGRIN/Shutterstock modified by Blockworks

share

Coinbase said Wednesday that Coinbase Advanced, its trading platform aimed at more sophisticated traders, will offer “up to 4% rewards on the USDC that they hold on Coinbase or on any USDC used in open orders.”

Coinbase launched 4% rewards on USDC for all Coinbase customers on June 15, adding the caveat that the “rate is subject to change and can vary.”

According to an FAQ article, Coinbase doesn’t lend out the USDC in its customers accounts, claiming it “has no right to use” those funds.

“USDC Rewards is a loyalty program that is funded with Coinbase’s own funds. The program is designed to incentivize more of our customers to use Coinbase services to store their USDC,” the FAQ continued. 

The 4% yield offering is significant because it rivals what major banks give in terms of APY for their high yield savings accounts.

Apple’s savings account, which launched in April and is tied to its credit card, offers 4.15% APY. 

And according to Bankrate, which tracks and rates financial products, there are a handful of savings accounts that surpass Coinbase’s 4%. Capital One has an account that, like Apple, offers 4.15% APY.

Coinbase Lend, a program that faced regulatory hurdles and was ultimately abandoned due to threats of legal action by the SEC, had initially planned to offer traders a 4% APY on USDC as a reward. Although the program was announced in 2021, it was later canceled.

Lend, unlike what Coinbase is offering now, would have loaned out the USDC in customer accounts “to verified borrowers.” If users had chosen to participate in the program, there was a potential risk that their funds would no longer be held under Coinbase’s custody. 

“This is a wholly separate offering from Lend, as USDC holders on Coinbase receive these rewards simply for holding USDC in their Coinbase accounts,” Coinbase told Blockworks.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.jpg

Research

Figure, founded by former SoFi CEO Mike Cagney, has emerged as a leader in onchain RWAs, with ~$17.5B publicly tokenized. The platform’s ecosystem volume is growing ~40% YoY as it expands beyond HELOCs into student loans, DSCR loans, unsecured loans, bankruptcy claims, and more. Operationally, Figure cuts average loan production cost by ~93% and compresses median funding time from ~42 days to ~10, creating a durable speed-and-cost advantage.

article-image

The Ethereum co-founder suggested LINEA holders would be eligible for other airdrops in cryptic tweet

article-image

The layer-2’s biggest release yet brings benefits — but a post-upgrade outage caused a chain reorg

article-image

Crypto is shifting into risk-on mode — pump.fun dominates meme activity, while Lido leans on treasury maneuvers

article-image

If the president breaks the Fed, he’ll own the budget problems

article-image

Combining Franklin Templeton’s tokenization expertise with Binance’s trading infrastructure could speed crypto adoption, companies say

article-image

The firm’s upcoming filing comes as competition heats up over the USDH stablecoin