Coinbase declared that the eligible US accounts will start earning the mentioned 1.25% interest rate for every single USDC that is hold on Coinbase. Rewards are going to be distributed every single month. This is not an offer that is available for the customers that have their residence in the state of New York.
Coinbase officially described USDC as a stablecoin that gives you access to price stability. This is because it is backed by a clear reserve asset. The stablecoin was created by a consortium that was co-founded by Coinbase, CENTRE. It already issued over 1 billion USDC from August 2019.
The best part of the deal is that users do not have to create transactions in order to earn interest rewards. The return is guaranteed and you do not have to transact the cryptocurrency, buy it or sell it.
USDC is not considered to be a legal tender, according to Coinbase. Instead, it is described as being a full digital currency. Coinbase put an emphasis on the fact that it is not an USDC depository institution and that the wallets of their customers are not protected through the Securities Investor Protection Corporation or the Federal Deposit Insurance Corporation.
USDC stands out as the 23rd largest cryptocurrency at the moment, based on a $450 million market capitalization. The largest stablecoin based on market cap, USDT (Tether), just overtook LTC (Litecoin) and BCH (Bitcoin Cash), making it the fourth-largest market cryptocurrency. The ones that are the largest are BTC (Bitcoin), ETH (Ether) and XRP.