With Coinbase announced its 4.1% USDC reward every week, Canadians have a bold new way to earn passive income.
Coinbase rolls out USDC rewards weekly in Canada
Crypto Exchange Coinbase (NASDAQ:COIN) announced on September 16 that Canadians can earn rewards with USD Coin (USDC) holdings. The company said: “We are excited to announce the launch of USDC Rewards in Canada, allowing Coinbase users to simply retain USDC and automatically earn 4.1% payments per week.” The program offers a 4.1% return on all balances, but Coinbase One subscribers can access the 4.5% rate, which has risen with a holding rate of up to $30,000. Rewards occur automatically without the need for opt-in, allowing users to withdraw, convert or transfer stubcoins at any time without restrictions.
Chief Executive Brian Armstrong highlighted the motivation for its deployment on social media platform X.
Most checking accounts in Canada have an interest rate of 0%. That’s not zero. So from today, all Canadians can earn 4.1% uncap rewards at Coinbase’s USDC, and up to 4.5% on Coinbase One.
The company often offered little yield, as opposed to the program and traditional Canadian financial products, including Cheki accounts, guaranteed investment certificates and loyalty programs. Coinbase also highlights survey data showing that 83% of Canadians believe reforms are needed in the global financial system, with 91% feeling that banks prioritize profits over customer success.
At the heart of the rewards program, Stablecoin, USDC, is issued by Circle and locks 1:1 to US dollars. Each token is fully supported by cash and short-term US Treasury held in regulated financial institutions. Coinbase has revealed that the compensation is structured as a loyalty program rather than a securities product or savings account, with the balance not insured by the Canadian Deposit Insurance Corporation or the Canadian Investor Protection Fund. Although reward rates are subject to adjustments, Coinbase has assembled the initiative as part of a broader effort to integrate stubcoin into the Canadian financial system as a more flexible and accessible option.
