Coinbase Wallet introduces 4.7% APY reward for USDC holders

Coinbase Wallet, the digital wallet platform out of crypto exchange giant Coinbase, introduced a new reward scheme for the USD-pegged stablecoin USDC.

Users holding USDC in their Coinbase Wallet can now earn a 4.7% annual percentage yield, which is paid out monthly on the Coinbase-incubated Layer 2 network Base. Global users can access the USDC reward, while those in the United States should see the feature this week, according to Wednesday's release.

Coinbase previously offered 4% rewards for its users holding USDC, upping the rewards return from 2%. The crypto exchange rewards USDC holders with its own funds , its FAQ says, aiming to prompt more individuals to deploy Coinbase's platforms to store USDC .

Coinbase jointly launched USDC in 2018 with the stablecoin issuer Circle. In August 2023, Coinbase took an undisclosed equity stake in Circle.

USDC is the second most popular USD-pegged stablecoin behind Tether's USDT. USDC maintains around 25% of the 107.33 billion stablecoin supply as of Nov. 20, according to The Block's Data Dashboard.