Coinbase USDC now earns on-chain rewards

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Coinbase Wallet is making it easier than ever to earn passive income with cryptocurrency.

The platform now offers 4.7% annual percentage yield (APY) for holding USD Coin (USDC) directly in Coinbase Wallet, allowing users to earn rewards while keeping full control of their funds, with no intermediaries or hidden fees involved.

Key Features

  1. Earn 4.7% APY: Users receive monthly rewards directly into their wallets.
  2. No Lock-Up Periods: Funds remain liquid, allowing users to access them at any time.
  3. Broad Global Availability: While rolling out to the U.S. this week, the program is available in most other regions worldwide.*
  4. Free Transfers on Base: Users can send USDC globally on Coinbase’s Base chain with zero transaction fees.

This initiative strengthens the case for stablecoins like USDC as not only a tool for payments but also an opportunity for financial growth.

What Is USDC and Why Is It Important?

USDC, or USD Coin, is a stablecoin pegged to the U.S. dollar. It combines the reliability of fiat money with the speed and efficiency of blockchain technology. Designed to maintain a 1:1 value with the dollar, USDC is widely used in decentralized finance (DeFi) as a secure and stable asset.

Key benefits of USDC include:

  • Global Accessibility: Unlike traditional banking systems, USDC transactions are not restricted by geography or time zones.
  • Instant Settlement: Payments and transfers settle in seconds, without the delays of traditional financial systems.
  • Decentralized Control: Users maintain custody of their funds without needing to trust intermediaries.

With the introduction of USDC Rewards, Coinbase Wallet expands its role from a transaction tool to a platform for earning passive income.

How Does It Work?

The USDC Rewards program allows users to earn 4.7% APY simply by holding USDC in their Coinbase Wallet. Here’s how it works:

  1. Monthly Payouts: Rewards are distributed directly to your wallet address once a month.
  2. No Lock-Ups: Unlike traditional savings accounts or staking programs, users can access their funds at any time.
  3. Multi-Chain Support: Rewards apply to USDC balances held on Base, Ethereum, Arbitrum, Avalanche C-Chain, Polygon, and Optimism.

This approach simplifies access to earning yields, making it appealing even to users who are new to cryptocurrency.

Free and Instant Global Payments

In addition to earning rewards, users can send USDC globally on Base, Coinbase’s layer-2 blockchain, with zero fees. This makes USDC not only a tool for earning but also a cost-effective alternative to traditional payment systems.

With no fees, instant transfers, and 24/7 availability, this feature is particularly useful for:

  • International Money Transfers: Avoid high remittance fees and delays.
  • Peer-to-Peer Payments: Pay friends or split bills seamlessly using a text link or wallet address.
  • Onchain Transactions: Move funds quickly across supported networks.

How to Get Started

Getting started with USDC Rewards is straightforward:

  1. Download Coinbase Wallet: Available for free on major app stores.
  2. Fund Your Wallet with USDC: Transfer USDC from another wallet or purchase it directly.
  3. Activate Rewards: Navigate to the USDC asset page in your Coinbase Wallet and activate rewards.

Once activated, you’ll start earning rewards, paid directly to your wallet address every month.

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