Coinbase Launches USDC Yield Paid in Bitcoin for Premium Users

Coinbase One users can now earn weekly 3.5% rewards on USDC, paid in Bitcoin or USDC, with no minimum balance and no deposit accounts.

Coinbase has introduced a new feature for its Coinbase One subscribers, allowing users to earn weekly rewards on USDC holdings.

Members can now receive up to 3.5% in rewards, which can be paid in either Bitcoin or USDC.

The company said the feature aims to expand benefits for premium users and support long-term account growth.

Coinbase One Users Gain New Reward Option

Coinbase confirmed that Coinbase One members can earn rewards starting from a balance as low as one dollar.

The company stated that the rewards program is not a deposit product and that USDC balances are not classified as deposit accounts.

The feature gives users freedom to choose whether they want to receive payouts in Bitcoin or USDC each week.

In a statement, CEO Brian Armstrong said that “sometimes the smallest features are the coolest ones,” referring to the new reward structure.

Moreover, Coinbase introduced the update as part of its broader subscription tools and said the program works without additional user requirements.

The initiative arrives as competition increases across platforms offering yield-based perks.

Reward programs have become a common tool for exchanges seeking to retain users and expand premium subscriptions.

Coinbase One aims to build on that trend by giving members more earning options for stablecoin balances.

Program Designed for Retention and Platform Activity

Coinbase said the core purpose of the new reward model is to encourage users to keep funds on the platform.

By offering weekly payouts on USDC, the company aims to increase user engagement and support average balance growth among premium subscribers.

The program functions as a loyalty mechanism and is not tied to lending or deposit products.

The company noted that many users prefer simple reward structures over more complex options that involve on-chain activity.

The USDC reward program uses a straightforward system that requires no additional actions from account holders.

This approach makes it accessible for users who want predictable earnings without interacting with DeFi tools.

Coinbase stated that the feature may encourage members to consolidate assets on the platform.

Rewards paid in Bitcoin also offer an option for users seeking BTC exposure without making additional trades.

The company said that flexibility was an important part of the program’s design.

Related Reading: Coinbase CEO Signals “Great Progress” as CLARITY Odds Surge

Comparison With On-Chain Yield Options

While Coinbase One provides a 3.5% reward rate, users seeking higher yields can still access the company’s on-chain lending integrations.

Coinbase noted that eligible users can earn up to 10.8% through Morpho, which is a separate on-chain product.

This option involves interacting with smart contracts and carries additional technical steps.

The difference between the 3.5% subscription reward and the higher on-chain rate reflects two different types of offerings.

Coinbase said the premium reward serves users who prefer simplicity, while the on-chain lending tool targets users comfortable with decentralized finance.

Market observers say the two-tier structure gives Coinbase customers more choices.

The platform offers a low-friction reward model for stablecoin holders and a higher-yield alternative for advanced users.

Coinbase continues to monitor demand as it expands features for its subscription service.

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