San Francisco-based cryptocurrency exchange Coinbase has cut the interest users can earn on the USDC stablecoin with the platform by 88%, from a 1.25% APY to 0.15%, according to an email the firm shared.
As CryptoGlobe reported, Coinbase started letting its eligible U.S. users earn 1.25% per year on the stablecoin in October 2019. At the time the firm said the move was in line with its mission “to make crypto accessible to everyone.”
The 88% drop in rewards puts Coinbase in line with major banks in the U.S. that offer similar savings rates. Large banks like the Bank of America, HSBC, Chase, and Wells Fargo offer savings accounts with no minimum balance requirements offering yields as low as 0.01%, while newer businesses, according to TheBalance, offer accounts with no minimum requirements offering up to 1.5% a year.
The average rate, according to the same source, is at 0.09% which means Coinbase’s rewards rate for USDC holders is still above the average being offered. The USDC stablecoin itself was launched in September 2018 as a product of CENTRE, a collaborative open-source technology project built by Coinbase and Circle.
The latest attestation report from Grant Thornton LLP: USD Coin ($USDC) issued remain fully backed by US dollars held in reserve. Circulating supply stands at 726,804,679 USDC https://t.co/jczJO2t0VY pic.twitter.com/nhPJmQhlhs
— CENTRE (@centre_io) May 21, 2020
Since then the stablecoin has become the second-largest in the cryptocurrency space, behind only Tether’s USDt token. In March of this year, during the crypto market crash, Tether’s stablecoin saw its supply surpass the 6 billion mark, while USDC surpassed 600 million.
At press time, there are over $9.19 billion worth of Tether’s USDt in circulation, while there are now $736 million worth of USDC tokens in circulation. It’s worth noting users can earn interest on USDC and USDt tokens on other platforms, including decentralized finance protocols.
Featured image via Pixabay.