The Cryptocurrency exchange Coinbase is launching a yield USDC saving program, allowing users to gain 4% APY on USDC, a stablecoin.
Coinbase announced pre-enroll for its USD coin saving program allows users to earn 4% annual percentage yield (APY) on USDC held on the platform. It highlights earn interest on USDC with a rate more than 50x the national average of a traditional saving account.
The company explained everyone wants to get the best interest rate available for the asset they hold. Interest rates steadily decreased over the past few decades, making it difficult to earn passive income on assets.
The coinbase said, “The national average for a traditional saving account hovers around 0.07% with high yield saving account still falling of even 1%.”
Coinbase high-yield saving offer, 4% APY on USDC means “Lending your USDC to coinbase, you can earn 8x the national average of high yield savings accounts.”
Coinbase added, “We want to offer our customers the opportunity to earn more interest than banks while also providing peace of mind and a safe, secure way to earn. That’s why we are proud to offer a principal guarantee for the USDC in your Coinbase account.”
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Pre-enrollment for the consumer-oriented coinbase product is now open for an eligible customer in the U.S. Users in Hawaii and New York are not eligible. They will receive an email confirmation once the pre-enrollment process is completed. After approval, they will automatically start to earn 4% APY on the USDC in their account. The company does not detailed APY may change at any time before you start lending.
