Coinbase Rewards Interest Account
- US Residents
- Stablecoin Holders
- Existing Coinbase Users
USDC Rewards is a crypto asset interest account offered by Coinbase. This product enables existing Coinbase users to automatically earn interest on their USD Coin (USDC) holdings. Participation is currently limited to residents of the United States.
Coinbase Rewards Interest Account - 2020 Comprehensive Review
Coinbase Rewards Interest Account Overview
|Interest Earning Assets||USDC|
|Earn Interest on||Stablecoin|
|Deposit Amounts||$1 - $1,000,000|
|Token Benefit||No Network Token|
|Platform Type||Centralized Lender|
|Platform Fees||No Fees|
|Excluded Regions||Only US supported.|
Coinbase Rewards Interest Rates (APY)
Coinbase users can automatically earn interest on USDC holdings without having to move their funds into a separate wallet or platform. Users can track calculated interest earnings in real time, but accrued interest is only distributed to Coinbase accounts on a monthly basis.
|Earn On||APY Rate|
Coinbase Rewards Interest Account Alternatives
Pros and Cons
- No Deposit Limit - Coinbase users can earn rewards on any amount of USDC that they deposit. The only requirement is that users need to hold at least $1 of USDC in their Coinbase account.
- Free USD Conversions - Coinbase does not charge any fees for exchanges between USD and USDC.
- Trustworthy Company - Coinbase is one of the most trusted companies in the industry. Users can be confident that their USDC holdings are safe and secure.
- Beginner Friendly - The Coinbase user experience is well suited for beginners.
- No Deposit Insurance - USDC wallets are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC). Coinbase’s crypto asset insurance policy only covers the exchange’s hot wallets, which account for 2% of all user funds.
- Regional Restrictions - Coinbase currently only allows United States residents to earn interest on USDC rewards.
- Crypto Asset Support - Coinbase currently only supports earning interest for USDC. All other crypto asset interest platforms enable users to earn interest on multiple crypto assets.
- Low APY - 1.25% APY is a much lower offering than the industry average. This rate is comparable to traditional savings accounts offered by online banks.
- Privacy - Coinbase requires a KYC check for users who wish to earn interest through USDC Rewards.
Frequently Asked Questions
Is Coinbase safe?
Yes. Coinbase has the best security reputation in the industry. 98% of customer funds are stored offline in cold wallets. Coinbase requires all users to set up two-factor authentication (2FA) on their accounts, and users have the option to enable crypto address whitelisting for added security.
Does Coinbase insure customer funds stored in USDC wallets?
No. USDC wallets are not covered by any insurance policies. Coinbase’s crypto asset insurance policy only covers the exchange’s hot wallets.
Does Coinbase Pro also support USDC Rewards?
No. USDC Rewards is not available for Coinbase Pro accounts.
What is the relationship between Coinbase and USDC?
Coinbase and Circle are the founding members of an open source technology project called CENTRE. USDC is the first crypto asset issued by CENTRE.
Will Coinbase add interest for additional crypto assets?
This is still to be determined. USDC is currently the only interest earning crypto asset available on Coinbase.
Does Coinbase require KYC for USDC Rewards?
Yes. All eligible users need to complete Level 2 verification on Coinbase before they are able to earn interest on their USDC holdings.
Does USDC Rewards accept United States residents?
Yes. USDC Rewards is available to US residents in 49 out of 50 states. Hawaii is the only state excluded from earning interest on USDC Rewards
Are there any alternatives for earning interest on crypto assets via Coinbase products?
Yes. Coinbase Wallet users can connect their wallets to Compound and dYdX. These interest account platforms offer higher APY and support for more crypto assets.
Coinbase is widely regarded as the most trusted company in the industry and the world’s leading compliant crypto asset platform. USDC Rewards provides Coinbase users with a secure and easy way to earn interest on their USDC holdings.
No Deposit Limits - Coinbase allows all eligible users to deposit and earn interest on all USDC holdings over $1.
Zero-Fee Conversions - Users can complete instant zero-fee trades between USD and USDC.
Trustworthy Company - Coinbase uses industry-leading security practices to keep customer funds safe. The company is also known for complying with numerous financial services and consumer protection laws.
Beginner Friendly - Coinbase users can earn interest automatically on USDC holdings. There is no need to move funds to a separate interest wallet, which streamlines the user experience.
Supported Crypto Assets - Coinbase currently only supports interest earning for USDC Coin (USDC).
Low APY - Users can only earn 1.25% APY, which is even lower than the rate that most online banks offer.
No Deposit Insurance - USDC wallets are not covered by any insurance policies.
Regional Availability - Coinbase offers crypto asset trading accounts to users in 100+ countries, yet USDC Rewards is only available to United States residents.
Due to the below average interest rates offered by USDC Rewards, Blockfer currently recommends that users consider other crypto asset interest platforms such as BlockFi, Celsius, and Nexo.
|Learn More||Best Features|
Coinbase Rewards Official Website