The announced yields represent the exchange increasing interest for USDC holders by more than 2,500% since it was lowered significantly last June. Major cryptocurrency exchange Coinbase has announced users will be able to earn 4% interest on USD Coin through a product the company compared to an alternative to a fiat savings account.
In a Tuesday blog post, Coinbase said its users could earn 4% annual percentage yield, or APY, by lending out their holdings for the U.S. dollar-pegged stablecoin USD Coin (USDC). The crypto exchange seemed to be targeting banks with the offering, claiming it has a better return than a typical savings account in the United States.
However, Coinbase said the loaned USDC is not protected by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation — unlike typical savings accounts in the U.S. — nor is the exchange offering a crypto interest account that provides “attractive rates on customers’ assets.” While most savings accounts in the United States provide returns of less than 1% on the dollar, many other crypto platforms provide an interest rate of roughly 8% for lending U.S. dollar-pegged stablecoins.
“While the high interest rates are appealing, they can present varying levels of risk,” claimed Coinbase. “You may find that your assets are loaned to unidentified third parties and subject to their credit risk, which could result in a total loss of your crypto holdings.”
The exchange originally offered 1.25% yields on USDC from October 2019 to June 2020, when it unexpectedly announced rewards for users holding the stablecoin would drop to 0.15%. The 4% yields represent Coinbase potentially increasing interest for USDC holders by more than 2,500%. At the time of publication, USDC is the 8th largest cryptocurrency, with a market capitalization of more than $25 billion. Tether (USDT) remains the most popular stablecoin on the crypto market, coming in 3rd with a $62.5 billion market cap.
# | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
1 | BTC | Bitcoin predictions | 83.6% | 28 | $82 044.15 | 3.11% | 19.34% | $1 622 892 837 361 | ||
---|---|---|---|---|---|---|---|---|---|---|
2 | ETH | Ethereum predictions | 76.8% | 43 | $3 194.87 | -0.26% | 29.64% | $384 738 641 649 | ||
3 | USDT | Tether predictions | 96% | 1 | $1.000598 | 0% | 0.13% | $123 460 245 202 | ||
4 | SOL | Solana predictions | 76.4% | 51 | $215.83 | 5.10% | 32.36% | $101 856 034 394 | ||
5 | BNB | Binance Coin predictions | 91.2% | 12 | $626.53 | -1.38% | 11.91% | $90 282 844 126 | ||
6 | DOGE | Dogecoin predictions | 60.4% | 78 | $0.288303 | 20.38% | 85.05% | $42 306 969 572 | ||
7 | USDC | USD Coin predictions | 94.4% | 1 | $0.999713 | -0.02% | -0.03% | $36 955 172 779 | ||
8 | XRP | XRP predictions | 90% | 13 | $0.587003 | 0.07% | 14.56% | $33 382 059 764 | ||
9 | ADA | Cardano predictions | 69.6% | 54 | $0.591951 | -0.01% | 78.05% | $20 729 265 815 | ||
10 | SHIB | SHIBA INU predictions | 57.2% | 94 | $0.000026 | 10.94% | 52.50% | $15 265 601 772 | ||
11 | TRX | TRON predictions | 94% | 1 | $0.165136 | -0.29% | -0.16% | $14 270 034 036 | ||
12 | TON | Toncoin predictions | 87.2% | 23 | $5.33 | -3.24% | 10.10% | $13 559 843 747 | ||
13 | AVAX | Avalanche predictions | 77.2% | 48 | $31.81 | -0.44% | 35.28% | $12 955 099 429 | ||
14 | STETH | Lido stETH predictions | 92.8% | 1 | $2 941.39 | -0.40% | -3.32% | $10 258 752 564 | ||
15 | WTRX | Wrapped TRON predictions | 90.8% | 1 | $0.116354 | -0.46% | 0.23% | $10 171 995 609 |
Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.
© 2015-2024 Crypto-Rating.com
The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.