Coinbase Ends USDC Rewards for Non-Paying Users, Reserves Benefits for Coinbase One Subscribers
Coinbase announced that starting December 15, USDC rewards will be available only to Coinbase One premium subscribers, ending the rewards program for non-paying users. Coinbase One, which costs $4.99 per month, offers benefits including no trading fees and uncapped earnings on USDC holdings, with rewards set at 4%.
USDC rewards have varied over time, peaking at 4.1% in July following the signing of the GENIUS Act; at that time, Coinbase One subscribers were advertised to earn 4.5%. In the third quarter, Coinbase reported $9 billion in USDC on its platform, reflecting a 90% year-over-year increase. Revenue from stablecoins grew by $107.1 million due to higher average USDC balances and deeper integration of USDC.
The company plans a system update livestream on December 17, though official details remain unconfirmed; previous leaks suggested potential new features like prediction market and tokenized stock trading integrations. USDC is issued by Circle, which maintains reserves in cash and cash-like assets; the interest earned on these reserves is influenced by Federal Reserve rate changes, recently cut to 3.5%–3.75%.
While the GENIUS Act prohibits stablecoin issuers from paying interest on tokens, it allows partners such as Coinbase to provide reward programs to encourage adoption. Coinbase initially launched USDC rewards in October 2019 at 1.25% when USDC was managed by Centre, which dissolved in 2023 after Coinbase acquired a stake in Circle.
