Coinbase Unlocks Ways To Earn Bitcoin Via USDC Yields

• Coinbase CEO Brian Armstrong announced that Coinbase One now lets users earn Bitcoin (sats) by holding USDC.
• The company’s chief lawyer, Paul Grewal, claimed that recent talks around the Clarity Act at the White House achieved “more progress.”

Brian Armstrong, CEO of Coinbase, unveiled a new way for people to earn Bitcoin (BTC). He announced that simply holding Circle’s USDC on the Coinbase One platform does just that.

Earning Bitcoin From USDC Holdings on Coinbase

“New way to stack sats: hold USDC, earn Bitcoin,” said Armstrong on his official social media channel.

The Coinbase boss added that it’s the smaller features that sometimes matter. Users can choose between the USDC stablecoin or BTC for their rewards.

ADVERTISEMENT“Sometimes the smaller features are the coolest ones,” Armstrong added. “Coinbase One members can choose to receive their weekly rewards in either BTC or USDC, rolling out now.”

To do that, simply do the following steps in your Coinbase One account:

• Hold a balance in USDC
• Go to the “Earning” section under “USDC Rewards” and choose BTC
• The platform pays out BTC/sats rewards weekly as long as the user maintains a balance in USDC

Coinbase One is a subscription service offered by Coinbase, starting at $4.99 a month for a Basic membership. Users enjoy zero trading fees for basic transactions, but are subject to certain limits and spreads. Additionally, it provides a boost in staking rewards, 24/7 priority support, tax filing assistance, and account protection.

ADVERTISEMENT## Criticisms on Coinbase’s Low US Stablecoin Yields

Some commenters on Armstrong’s post criticized Coinbase’s low rewards for stablecoin yields compared to parking one’s money in US Treasuries. Moreover, they noted that the process poses no solvency risks and is backed by the full credit of the US government. Likewise, the higher earnings enable one to buy more sats than those offered by the crypto exchange.

However, Coinbase’s lower stablecoin yields compared to most bank Certificates of Deposit (CDs) and US Treasury securities may be a deliberate strategy. It significantly mitigates the impact to these traditional investment mediums, while offering customers an easy way out from the Coinbase offering’s lack of lock-in period or lack of penalties for early withdrawals. The weekly payouts allow a shorter span to unlock earnings and greater flexibility in managing their holdings.

The calculated move comes hot on the heels of ongoing negotiations between traditional finance (TradFi) institutions and the crypto industry over the Clarity Act, in which Coinbase is a key player in the discussions.

Clarity Act Negotiations

According to Paul Grewal, Chief Legal Officer of Coinbase, parties to the Clarity Act talks at the White House made “more progress” on Thursday. He described the tone of the meeting as “constructive” and “cooperative.”

Eleanor Terrett, host of Crypto In America, shared that the latest dialogue between the banking and crypto sectors on the proposed bill was smaller than last week’s. Those present in the discussion were representatives of the following:

• Coinbase
• Ripple
• a16z
• Blockchain Association
• Crypto Council for Innovation
• American Bankers Association
• Bank Policy Institute
• Independent Community Bankers of America

Independent representatives from banks were notably absent during the event.

ADVERTISEMENTSources from the crypto industry reported that the banking representatives’ concerns focused more on the potential competitive pressure from crypto, particularly stablecoins. It was a huge shift from earlier worries about deposit flight.

The parties aim to finalize the bill for markup within the spring.