Coinbase users will earn rewards on USDC holdings
Cryptocurrency exchange Coinbase wants to foster USDC adoption by letting you earn rewards when you keep USDC on your Coinbase account. Essentially, if you’re a U.S. customer, your Coinbase account has become an uninsured savings account with a 1.25% APY rewards rate.
If you’re not familiar with USDC, it’s a stablecoin backed by CENTRE, a consortium of companies working in the cryptocurrency space. One USDC is worth exactly 1 USD, and CENTRE members save USD in regular bank accounts whenever they issue USDC tokens. CENTRE members currently hold more than $1 billion in reserve bank accounts as they have issued over 1 billion USDC.
In addition to price stability, stablecoins work just like any other ERC-20 tokens. You can hold them in a cryptocurrency wallet, you can send and receive them, you can exchange them.
When you want to buy some bitcoins on Coinbase, users usually transfer some money to their accounts and then convert USD into BTC. And yet, transferring money to a Coinbase account can take days, which means you could miss out on some big price changes.
Conversely, if you’re selling some bitcoins on Coinbase, chances are you exchanged those BTC into USD and then transferred
This post was originally published on this site