The days of a crypto market without so-called stable coins are long gone. They offer the advantage of keeping their value at $ 1, which is of particular interest to investors in the extremely volatile crypto market. This stability also makes stable coins suitable for earning interest, as Coinbase had offered with the USDC since October 2019. But the rewards have now been drastically reduced.
Coinbase reduces interest rates from 1.25% to 0.15%
Stablecoins are becoming increasingly popular and are continuously increasing their market capitalization. Coinbase has also jumped on this trend and developed the stablecoin USDC together with Circle. Since the beginning of October, Coinbase customers have been able to earn interest by holding the stable coin. But as the company announced today, this percentage is now being drastically reduced – from 1.25% annually to 0.15% annually. This corresponds to a reduction of almost 90%. The changes will take effect on June 3, 2020.So far, earning interest with the stablecoin has only been available to US citizens and is paid monthly. Coinbase and Circle’s Stablecoin USDC is in 21st place with a market cap of $ 738,426,051.