Key Highlights
- Coinbase relaunched Direct Deposit in the U.S. for automatic paycheck allocation into crypto or USDC.
- The feature includes zero trading fees with possible spreads and a high weekly limit of up to $200,000.
- Users can connect payroll deposits with Coinbase One rewards, staking, and spending features.
Crypto exchange Coinbase has brought back its Direct Deposit feature in the United States, allowing users to send part of their salary directly to their Coinbase account and automatically convert it into crypto or USDC stablecoins.
CEO Brian Armstrong announced the update on X. “Route your paycheck (or some part of it) directly to Coinbase to auto-invest it, lend it out, or spend with the Coinbase One Card to earn up to 4% on every purchase,” he posted.
This service is made for working people who get paid through payroll and want their money to go directly into investing, saving, or spending without needing to move it manually from a bank.
How Coinbase direct deposit works
According to Coinbase, users will have to first set it up by creating accounts and routing numbers inside the Coinbase app and giving those details to their employer or payroll provider so their salary can be sent directly to Coinbase.
Once the money arrives in their accounts, users can decide how they want to handle it. They can split it into different options like Bitcoin, Ethereum, or USDC, or keep it as cash inside the account.
Coinbase said that buying crypto through Direct Deposit comes with zero trading fees, but there may still be a small price difference called a spread, depending on market conditions. The exchange also noted that payments do not land instantly, but take about three to five business days, depending on how the employer’s payroll system works. Coinbase also increased the limit to $200,000 per week, so it fits both small and large salaries or income plans.
Rewards and spreading options
Coinbase linked the feature with its subscription product, Coinbase One, where users may access extra benefits such as higher USDC rewards and staking returns on selected assets like ETH and SOL, depending on where the user lives and current conditions.
Users can also spend their money directly from their Coinbase account using a Coinbase card, with rewards of up to 4% on purchases in some cases. The platform also allows users to invest or lend their money after it arrives, depending on what options are available in the app.
Previously shut down due to regulations
Coinbase originally launched Direct Deposit in 2021 but later discontinued the feature in 2024 amid shifting regulatory conditions in the United States. The exchange is now bringing it back with expanded limits and additional integrations tied to rewards and spending products.
One particular reason behind this is the change in regulatory approach in the U.S. Governments are already discussing new rules that are focused on stablecoins and crypto rewards, which could affect how companies like Coinbase offer earnings on idle funds.
Moreover, Coinbase last month received conditional approval for a national trust charter from the Office of the Comptroller of the Currency, though this does not change deposit insurance coverage or allow full banking powers on its own.
Also Read: Coinbase Expands Global Fiat Rails With Standard Chartered
