The leading US crypto exchange Coinbase is launching a crypto rewards program.
Eligible customers in the US can now earn 1.25% APY by holding USD Coin (USDC) in their Coinbase account. The stablecoin is supposed to maintain a 1:1 peg with the US dollar and give traders a reliable way to sidestep the volatile crypto market.
The move is designed to incentivize people to keep their capital in crypto instead of converting to fiat.
“Eligible customers will begin earning rewards on any USD Coins they currently hold on Coinbase, with rewards being distributed on a monthly basis. The percentage rate of rewards is the same no matter your balance.
The more USD Coins you hold, the more rewards you will automatically earn, all with no additional costs or fees. USD Coin rewards accrue daily, and customers will maintain complete control over their USD Coins at all times.”
Coinbase co-founded the consortium CENTRE to create USD Coin, which launched in October of 2018.
It’s one of many in a long list of crypto assets that aim to consistently hold a stable peg to fiat currency.
Since launch day, its value has consistently fluctuated between about $0.99 and $1.02.
The crypto asset currently has $144.5 million in volume over the last 24 hours, according to CoinMarketCap.
The leading stablecoin Tether (USDT), which is outperforming Bitcoin in terms of total trading volume, shows $21.9 billion in volume over the last day, making it the most widely used cryptocurrency.