Global crypto gateway Coinbase announces high yield interest on USDC stablecoins will be available on the platform soon. Users invited to pre-register to earn around 4% interest, at a time when traditional banks interest offerings to savers is extremely low, if not non-existent.
Following on the heels of BlockFi, Celsius and other challenger platforms, Coinbase announces high yield interest accounts will soon be available, starting with USDC stablecoin savings. Whilst the high yield accounts are will not be FDIC insured, the company says it will guarantee them, giving investors confidence in the offering.
With an annual yield of around 4%, savers will enjoy much higher rates of return than putting their money in a traditional bank, where the interest rate is around 0.5%, but the rate is much less than some of the other competitors, including BlockFi, who currently offer 8.6% returns on USDC and some other stablecoins.
Coinbase announced the retail investors could pre-enrol into the programme to receive a return on their Stablecoins, with USDB being so far the only one announced as valid for the offering. USDC is a blockchain equivalent of the US Dollar, and is backed by a 1-to-1 reserve of USD.
The offering will be available throughout the world, with some notable exceptions in the USA, including in the states of New York and Hawaii, due to regulatory restrictions.
The announcement comes as Coinbase CEO Brian Armstrong tweeted that the companies goal is to list “every asset” where it is legal to do so. Although he was quick to point out that just because Coinbase lists an asset, it should not be taken as an endorsement by the company.
“We are asset agnostic, because we believe in free markets and that consumers should have choice in the cryptoeconomy. This is how we’ll have the most innovation.”Brian Armstrong, CEO of Coinbase