Coinbase Launches 4.7% APY USDC Service: Will U.S. Customers Be Left Out?

Popular crypto exchange Coinbase is set to launch its long-awaited USDC staking reward program, marking a significant milestone after a four-year delay.

Coinbase, a globally recognized leader in the crypto industry, operates through Coinbase US for American users and a separate global entity for other regions. Renowned for its reliable and innovative services, Coinbase goes beyond trading to offer blockchain tools leveraged by governments and financial institutions.

In this latest initiative, Coinbase Wallet has introduced a 4.7% APY reward program for USDC holdings. This program features global availability, monthly payouts, and no lock-up requirements. Rewards will be directly deposited into users’ wallets on the Base network, showcasing Coinbase’s focus on a decentralised ecosystem. However, the service will be facilitated via Coinbase Wallet and not directly through the Coinbase exchange platform, ensuring a broader reach in compliance with global regulations.

Although the program will roll out globally, eligibility criteria may differ depending on local regulations, as per some reports. The full implementation of this service is expected to conclude within seven days.

Coinbase’s USDC Staking Program and Legal Challenges

In Q2 2022, Coinbase had proposed offering staking rewards for USDC and other cryptocurrencies. However, the U.S. Securities and Exchange Commission (SEC) objected, forcing the company to abandon its plans.

The SEC’s pushback drew criticism from many industry leaders, who voiced their concerns about over-regulation. Coinbase was compelled to pivot its strategy and now leverages Coinbase Wallet to implement the staking program, navigating around regulatory hurdles. This shift reflects Coinbase’s commitment to providing decentralised financial solutions while adhering to legal frameworks.

The introduction of this program also highlights a more crypto-friendly environment, signalling a hopeful future for the broader adoption of decentralised finance.

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