On Tuesday, Coinbase announced that customers can sign up for a waiting list to start earning 4% APY interest on USD Coin (USDC).
Earning With USDC
USDC is an Ethereum-based stablecoin from the Centre consortium. Stablecoin means that its value is pegged to the U.S. dollar so every USDC will always be worth US$1.00.
The cryptocurrency exchange is hoping that people will be attracted to its interest rate that is currently higher than that offered by banks through savings accounts. Unlike a bank, Coinbase is quick to note that although “your USDC is guaranteed,” your USDC wallet is not a savings account and is not protected by FDIC or SIPC insurance.
Pre-enrollment is available to eligible people in the U.S. To get started you can sign up at Coinbase.com/lend. When you come off of the waitlist, you will automatically start to earn 4% APY on the USDC in your account.