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Coinbase strengthens positions. Users will earn 4% interest on USDC

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Several messages came from Coinbase at once. According to representatives of the leading US cryptocurrency exchange, it planned to launch a store of cryptographic applications soon.

The store is planning to place products created by developers from other companies. Brian Armstrong, general director of the exchange, said that it is necessary to develop economic activity, to offer developers new solutions.

Coinbase believes that it is necessary to expand the number of crypto assets on the exchange and increase the speed of new listings.

Coinbase plans

In the near future, the procedures for the due diligence of potential listings will be shortened. They will launch an “experimental base” for new currencies. The process of checking new assets itself will be shortened several times. In addition, the exchange is ready to offer an asset storage service.

The upcoming Coinbase app will support all crypto-based apps. Thus, users will have the opportunity to work with De-Fi using the exchange application.

This is in line with the company’s plans to become a global player in the international crypto market. In the future, the exchange intends to launch other products, and in almost all countries.

It is worth noting that the German authorities have allowed Coinbase to conduct crypto-custody business in the country. The permit will be effective tomorrow. In fact, the exchange displaces other sites in this segment, gaining new positions. Due to a competent promotion policy and the absence of conflicts with regulators, Coinbase may well take a monopoly position. And that’s not all the news for exchange users.

Users will be able to earn 4% per annum

Yesterday, representatives of the exchange notified users that they will be able to receive 4% per annum by providing their assets in exchange for the USDC stablecoin.

Thus, users will be able to earn on their accounts in USDC.

However, due to regulatory restrictions, the service is currently only available to US residents, in fact, the Coinbase offering will not yet be available even in New York and Hawaii.

Basically, the new Coinbase product is a loan that a user gives to a crypto exchange in the form of USDC. The company compares the instrument with a traditional savings account, but reasonably avoids this term – only organizations with a banking license can open deposits.

Previously, the exchange offered only 1.25% of USDC income. The rise in yield to 4% per year indicates that Coinbase is trying to boost interest in USDC among asset holders. In this regard, the exchange is beginning to compete with banking institutions operating in the financial market.

Although despite the high percentage, the profitability of Coinbase accounts is lower than that of competitors such as BlockFi. The company offers 8.6% yield on USDC and other stablecoins, including those issued by Gemini and Paxos.

However, if all plans of the exchange are fully implemented, this will mean strengthening its position on a global scale. This policy of the Coinbase management is noteworthy as it shows that crypto exchanges can develop successfully.

So far, Coinbase ranked 8th in terms of capitalization and 2nd in terms of daily trading volume. It is possible that after the innovations, the exchange will be able to rise even higher in the ranking, becoming a full-fledged competitor to Binance.

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