Coinbase One now pays up to 3.5% weekly on USDC — rewards can be paid in BTC or USDC
Coinbase has launched a new Coinbase One benefit allowing premium subscribers to earn up to 3.5% annualized rewards on USDC balances, paid weekly. Payouts can be received either in Bitcoin (BTC) or in USDC, and rewards begin from balances as low as $1. Coinbase stresses this is not a deposit product and USDC balances are not classified as deposit accounts. The feature requires no extra actions from users and is positioned as a loyalty/retention tool to encourage funds to remain on the platform. Coinbase contrasts the simple 3.5% subscription yield with higher on-chain lending options — it cited Morpho integrations that can offer up to ~10.8% for users who interact with on-chain products. The rollout joins a broader industry trend where exchanges use yield perks to retain customers and grow premium subscriptions.
Neutral
The announcement is a user-acquisition and retention move with limited direct monetary shock to markets. Rewarding USDC with payouts in BTC or USDC can modestly increase on-platform stablecoin balances and provide passive BTC inflows for some users, but the scale is tied to Coinbase One subscriber uptake rather than a protocol-level liquidity change. The 3.5% subscription yield is lower than many on-chain lending rates (e.g., Morpho ~10.8%), so it primarily appeals to users favoring simplicity and custody rather than yield maximization. Short-term market effects: likely muted — small incremental demand for BTC from optional payouts and modest increase in USDC held on Coinbase could nudge exchange flows but are unlikely to move prices materially. Long-term effects: if the program meaningfully increases Coinbase custodial balances, it could improve fee revenue and user stickiness, supporting platform valuation; but broader crypto market direction will still depend on macro factors, regulation, and major liquidity events. Historical parallels: exchanges offering yield (staking/yield programs) tend to boost platform balances and retention (supporting business metrics) without producing immediate bullish price shocks unless adoption is massive. Thus impact is neutral to mildly positive for Coinbase’s product metrics but not decisively bullish for market prices.