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


FOTOGRIN/Shutterstock modified by Blockworks


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.

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