Cryptocurrency exchange Coinbase now offers an alternative to traditional savings accounts with 4% APY on USD coin (USDC) deposits. According to a blog post, initially the new service is now open for eligible customers in the US.
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The exchange plans to expand the list of cryptocurrencies for earning interest on them. However, Coinbase emphasizes that APY may change at any time before a user starts lending.
"We want to offer our customers the opportunity to earn more interest than banks while also providing peace of mind and a safe, secure way to earn," the exchange said.
Coinbase notes that the national average for a traditional savings account is at the 0.07% mark, with high-yield savings accounts falling well short of even 1%.³ This means that by lending USDC to Coinbase, users can earn 8x the national average of high-yield savings accounts, the exchange highlighted.
Meanwhile, Gemini allows earning up to 7.4% interest on the gemini dollar (GUSD) stablecoin via Gemini Earn. Gemini emphasizes this interest rate is more than 100 times the national US average. However, only customers from the US can move earn on GUSD into Earn.
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