• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

SwaCash | Internet Marketing News

Latest Updates on Tech, Internet & Digital World

  • Home
  • Digital Marketing
  • Social Media
  • Technology
  • About
  • Contact Us
You are here: Home / News / Coinbase bets on a savings account at 4%

Coinbase bets on a savings account at 4%

July 5, 2021 by Amer Bekic

Coinbase’s new secret boot, based on USDC (its stablecoin).

Cryptocurrency buying platforms must reinvent themselves in an attempt to stand out from the competition, continue to be profitable even when asset prices collapse and public authorities tighten the screw. The American Coinbase, on the stock exchange, has just announced a series of news including the arrival of a savings account based on USDC, its stablecoin.

The plan is to set up a 4% rate of return for clients who exchange their holdings for USDC. The digital token is backed by the dollar, and user funds would allow Coinbase to continue to develop this stablecoin which belongs to it, and which is currently the eighth largest cryptocurrency in the world, ahead of Polkadot, Uniswap and BUSD (the stablecoin of its competitor Binance).

Currently, $25 billion USD Coin is in circulation based on the market cap reported by Coin Market Cap at the time of publishing this article. Unlike an asset like Bitcoin, stablecoins do not plan to inflate their price, on the contrary: it remains backed by a fiat currency, the US dollar in the case of USDC.

A secure placement?

In the past, Coinbase had previously offered returns for its users who adopted USDC, up to 1.25%. The platform had maintained this reward from October 2019 to August 2020. Since then, the yield had collapsed to only 0.15%. Revaluing it to 4% would be much more attractive, as it would be a much higher interest rate than that of a savings account with a bank.

The comparison with a traditional bank book was made by Coinbase, in order to attract its millions of customers to exchange USDC. That said, as a reminder, the protections in force have nothing to do between a traditional savings account and the purchase of stablecoin from Coinbase. Neither the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC) protects clients’ assets, Cointribune recalls.

Still, the solution is much more secure than the “farming” products offered by other platforms. This is the most popular way to get paid with cryptocurrency funds, but these kinds of services are risky, despite their higher rates. “They can present varying levels of risk,” Coinbase warns. “You may find that your assets are on loan to unidentified third parties and subject to their credit risk, which could result in a total loss of your crypto holdings.”

Another key project

Brian Armstrong, CEO and co-founder of Coinbase, has made a habit of sharing his plans with his community through posts published on the Medium platform. Last week, in a new article called “Embracing Decentralization at Coinbase,” he spoke about his strategic vision to launch a crypto app store.

“Apple didn’t try to create all the apps for the iPhone, it made it easy for developers and mobile users to access new, innovative apps. We have to do the same thing in crypto,” wrote the man, without giving more details except the return of the company’s ambitions in DeFi, which increasingly resembled a bridge between the Blockchain and traditional and supervised finance. Case to follow.

Filed Under: News

Primary Sidebar

E-mail Newsletter

More Articles

Three Tweets related to EtherRock sales

Not one not two, Three digital pet rock cliparts sell for $600K each

August 22, 2021 By Amer Bekic

PolyNetwork Hacking Incedence

Hacker who stole $800 Million, now offered a white hat job by its victim firm

August 20, 2021 By Amer Bekic

credit card back panel containing the magnetic stripe

MasterCard announces future without magnetic stripe on the back.

August 17, 2021 By Amer Bekic

Fortune magazine sells its cover art as NFT. Raises 1.3 Million dollars

August 14, 2021 By Amer Bekic

Bored Ape Yacht Club Token 3749

This bored ape pic just sold for 1.29 Million dollars!

August 14, 2021 By Amer Bekic

Footer

Search this site

Recent Articles

  • Not one not two, Three digital pet rock cliparts sell for $600K each
  • Hacker who stole $800 Million, now offered a white hat job by its victim firm
  • MasterCard announces future without magnetic stripe on the back.
  • Fortune magazine sells its cover art as NFT. Raises 1.3 Million dollars
  • This bored ape pic just sold for 1.29 Million dollars!

Browse Topics

  • Blogging (164)
  • Content Marketing (7)
  • Cryptocurrency (5)
  • Digital Marketin (4)
  • Digital Marketing (333)
  • E-commerce (122)
  • Google (195)
  • Google Ads (24)
  • Marketing (166)
  • News (344)
  • Seo (74)
  • Social Media (43)
  • Technology (27)
  • Uncategorized (82)
  • WordPress (22)

Tags

Amazon Android Apple Apple Watch Artificial Intelligence B2B Bitcoin Blogging China Content Content Marketing Coronavirus Cryptocurrency Cybercriminals cybersecurity Digital Digital Marketing Facebook Gaming Google Increase Sales Instagram Intel internet strategy iOS 15 iPhone iPhone 12 IPhone 13 Make Money Marketing Microsoft Nvidia Online Marketing Samsung Science Search engine optimization Seo SEO optimization by content Social Media Social networks Technology TikTok Twitter Windows 11 YouTube

© 2019–2023 · SwaCash.com