Coinbase cuts rewards on USDC stablecoin holdings by nearly 90%

Stablecoins • June 3, 2020, 8:15AM EDT
UPDATED: June 3, 2020, 10:09AM EDT
The Block

Crypto exchange Coinbase has slashed rewards on USDC stablecoin holdings by about 90%.

Until now, Coinbase users earned 1.25% annual percentage yield (APY) on their USDC funds. That reward now has been cut to just 0.15% APY, effective today.

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Coinbase did not specify the rationale behind the move, but the reduction is in line with other major banks and fintech firms.

Coinbase launched the USDC rewards initiative last October for U.S. customers. Rewards accrue daily and are distributed on a monthly basis.

The USDC stablecoin is backed by CENTRE — a consortium co-founded by Coinbase and Circle. It is the second-largest stablecoin with over 7% market share, while Tether (USDT) dominates the space with over 85% market share.

The reward cut comes at a time when stablecoins are rising in popularity. The total supply of stablecoins hit $10 billion-mark for the first time last month.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.

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