Coinbase Scales Up USDC Yield to 4%
Coinbase Scales Up USDC Yield to 4%
Coinbase does not show any sign to hold its Lend products despite a fresh battle with the US Securities and Exchange Commission.
The American crypto exchange is increasing its USDC reward rate to 4%. This is double the previous offer of a 2% yield for the top stablecoin.
In an announcement made via Twitter, Coinbase shared the 4% reward will be available for its global users. The platform is home to 56 million verified customers in over 100 countries worldwide.
On June 6, the US SEC filed a lawsuit against Coinbase and named several coins as ‘crypto securities,’ to which USDC is not included.
The lawsuit named top cryptocurrencies Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), and Axie Infinity (AXS) in both Coinbase and Binance lawsuit, beincrypto details.
Coinbase’s recent decision to scale up its USDC yield might be sending a message to the SEC as the latter continues to crackdown on digital assets.
In a 2021 report, the regulatory body warned Coinbase of classifying its Lend feature as a security.
CEO Brian Armstrong said they asked the SEC at which grounds it clarifies as a security so they could proactively work with the regulators. The Lend feature continued operating smoothly since the report.
Coinbase Lend’s 4% USDC yield is higher than the national average for savings accounts in the United States which is currently at 0.4%.
Only a handful of banking institutions offered as much as 4%, in response to the hawkish Federal Reserve interest rate which is now at 5.25%.
USDC saw a significant decline in investor interest since the SEC tightened its grip against crypto assets. The stablecoin’s supply has recently slumped to 28.2 billion which is the lowest in 22 months.
