Coinbase Global (NASDAQ:COIN) said on Tuesday (September 16) that it is rolling out rewards on USD Coin (USDC) balances for Canadian users, offering returns of up to 4.5 percent
This marks the first time Canadians can automatically earn interest-like payouts simply by holding USDC on the platform. Coinbase customers in Canada will receive 4.1 percent annualized rewards on their USDC, paid weekly.
Members of Coinbase One, the company’s subscription service, can boost the rate to 4.5 percent on up to US$30,000 in holdings, while any amount above that earns the base 4.1 percent.
There are no lockups or opt-ins required, and users retain full access to withdraw or spend their USDC at any time.
USDC is a stablecoin that is pegged 1:1 to the US dollar and backed by reserves of cash and short-term US treasuries held with regulated institutions. Unlike volatile cryptocurrencies such as Bitcoin, stablecoins are designed to maintain price stability, making them more suitable for payments, savings and yield-generating products.
Angus Reid research conducted for Coinbase in August 2024 shows 83 percent of Canadians believe the global financial system needs an overhaul, while 91 percent think domestic banks prioritize profits over customers’ financial wellbeing.
Coinbase’s Canadian rollout builds on the company’s November 2024 introduction of USDC rewards through Coinbase Wallet, with a 4.7 percent annual yield offered to global users.
At the time, the company highlighted USDC’s utility in combining “the stability of the U.S. dollar with the power and speed of the internet,” enabling instant, borderless transactions.
“Along with earning rewards, you can send USDC on Base instantly and with zero fees,” Coinbase said when it launched the wallet-based program last year, noting that payouts would be deposited monthly into user accounts.
That feature was made available across most regions, including the US.
The wallet program also builds on another strategic advantage of stablecoins: cross-border efficiency. Transactions conducted on blockchain networks like Base, Coinbase’s Ethereum Layer 2 chain, are settled in real time, which means the fees and delays associated with traditional payment rails are sidestepped.
The Canadian launch arrives as stablecoins gain momentum in mainstream finance. Companies including Visa (NYSE:V), PayPal Holdings (NASDAQ:PYPL) and a growing number of fintech platforms have announced integrations in the past year, allowing users to pay, settle or transfer value using tokens like USDC and Tether’s USDT.
Coinbase is betting that frustration with legacy systems, combined with the appeal of higher yields and fast payments, will be enough to tip more users toward digital assets.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.