Coinbase Advanced, the platform designed for experienced traders, now provides up to 4% rewards on USDC holdings—whether stored in accounts or used in open orders. This follows Coinbase’s June 15 rollout of 4% USDC rewards for all users, though rates may fluctuate.
How USDC Rewards Work
- No Lending Involved: Coinbase states it does not lend out customer USDC, emphasizing funds remain under full custody.
- Funded by Coinbase: Rewards are part of a loyalty program financed by Coinbase to incentivize USDC storage on its platform.
Competitive Landscape
Coinbase’s 4% yield rivals traditional finance offerings:
- Apple Savings: 4.15% APY (launched April 2025).
- Capital One: High-yield savings accounts at 4.15% APY.
Distinction from Coinbase Lend
The defunct Coinbase Lend program (2021) aimed to offer 4% APY by loaning USDC to borrowers, risking custodial status. The current rewards program carries no such risk—rewards are paid directly by Coinbase.
👉 Explore high-yield crypto opportunities
FAQ Section
Q: Is my USDC lent out to earn rewards?
A: No. Coinbase holds USDC in custody without lending or borrowing.
Q: How does Coinbase fund the 4% rewards?
A: The program uses Coinbase’s own funds to encourage USDC storage on its platform.
Q: How does this compare to bank savings rates?
A: Competitive—Apple and Capital One offer ~4.15% APY, but Coinbase provides similar yields with crypto flexibility.
Q: Can the reward rate change?
A: Yes, rates are subject to adjustment based on market conditions.
👉 Discover more about USDC staking
Key Takeaways
- 4% USDC rewards now available for Coinbase Advanced and general users.
- No lending risk—unlike the abandoned Lend program.
- Competes with top-tier banks, offering crypto-native advantages.
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