Coinbase Wallet Introduces Rewards Program for USDC Holders

Coinbase Wallet has begun letting users of its USDC stablecoin earn rewards.

USDC Rewards, announced Wednesday (Nov. 20), lets Coinbase Wallet users earn 4.7% APY just by holding USDC on-chain.

“USDC combines the stability of the U.S. dollar with the power and speed of the internet,” the company wrote on its blog. “You can use USDC to send and receive payments to anyone, anywhere, or hold and earn rewards on your money — and it’s designed to be redeemable 1:1 with the U.S. dollar. Because it’s onchain, USDC transactions are settled instantaneously and securely across borders.”

According to the blog post, rewards will be paid out monthly, directly into user wallets. This feature is available in most regions worldwide, and is being offered to American users this week.

“Along with earning rewards, you can send USDC on Base instantly and with zero fees,” Coinbase added. “Whether paying a friend via text link or sending funds globally, these onchain transactions are faster and more cost-effective than traditional methods.”

The offering comes as the financial service world continues to display strong interest in stablecoins, driven by their potential to optimize cross-border payments and provide alternative payment solutions.

This year has seen a number of partnerships and projects in this sector, involving the likes of Coinbase, Circle, Visa and PayPal.

“Other payment providers and FinTech companies are integrating stablecoins into their platforms, allowing users to make payments or settle accounts using these assets,” PYMNTS wrote in October.

“Major stablecoins like USDC and USDT are compatible with various blockchain networks, enabling interoperability and flexibility in connecting different payment systems. This integration helps facilitate smoother transactions between digital wallets, bank accounts and other payment platforms, creating a seamless user experience.

Meanwhile, this week saw a report by the Wall Street Journal (WSJ) that President-Elect Donald Trump would meet with Coinbase CEO Brian Armstrong to discuss the new administration’s personnel appointments.

Trump had pledged to form a presidential advisory commission focused on bitcoin and crypto if elected, a body would develop transparent regulatory guidance in the sector.

According to the WSJ, Armstrong — whose company has been battling the U.S. Securities and Exchange Commission (SEC) — has pitched former Trump SEC Commissioner Hester Peirce as the next head of the commission.