The potential for higher returns comes with different risks. Stablecoins are not protected by CDIC insurance and their regulatory environment remains uncertain; however, Coinbase One membership provides premium members with account protection up to $250,000 CAD. Coinbase offers an alternative to traditional banking—prioritizing accessibility, transparency, and competitive returns.
We’re digging into what you need to know about USDC rewards to determine if this consumer-first approach to finance is right for you.
Challenges facing traditional banks
Anyone who has a traditional savings account knows that you won’t make much money on your balance. Big banks often offer interest rates as high as 1.15%, while some accounts pay next to nothing. In fact, it’s still common for savings rates to hover near 0%.
On top of that, many banks charge monthly fees (often waived only if you maintain a large minimum balance) and offer little value through loyalty programs.
It’s no surprise that Canadians have lost faith in the system. In a recent Coinbase survey, 83% say Canada’s financial system needs an overhauland 91% think banks put profits before customers. It’s easy to see why alternatives like cryptocurrency exchanges are growing in popularity.
Demand for modern, digital-first financial tools is growing
Canadians are demanding more from financial institutions – transparency, accessibility and real value. Instead of seeing banks as a place to store their money, many people are looking to banks as partners to help them grow their money. They want to be able to move money without unnecessary restrictions, which helps explain the growing demand for digital-first financial instruments
FICO research backs this up, with 90 per cent of Canadians saying they prioritize customer service over the financial products offered by their banks.
What are stablecoins and why they are important
If you’re familiar with cryptocurrencies, you probably know that stablecoins are digital assets that are pegged to a currency. For example, 1 USDC (a popular stablecoin) is pegged to the value of 1 US dollar. This provides stability while maintaining the speed and flexibility that make digital assets so attractive.
The article continues as follows
X
Users can use stablecoins to trade, save, and earn rewards without the volatility common to cryptocurrencies. Some experts even believe that stablecoins and other crypto technologies could compete with, or even eventually replace, today’s traditional payment systems.
Cryptocurrency exchanges allow users Pay faster, Pay low feesand there are Better access to financial instruments. For example, Coinbase has partnered with Shopify to accept USDC payments in some Shopify stores, providing users with convenient payment options that do not rely on traditional banking networks.
Inside Coinbase’s USDC Rewards (And Why It’s a Game Changer)
Coinbase’s USDC rewards demonstrate how the financial industry is shifting to put consumers first. The platform is focused on customer success, using technology to help Canadians grow and manage their money.
Featured
Coin library
- Account minimum: $1
- Transaction fees: 0% – 2% per transaction. Varies by transaction amount and type (Simple, Advanced)
- Welcome offer: None currently
Here’s how it works: You can earn 3.85% uncapped rewards* on your daily USDC balance, and your earned rewards will be deposited over the weekend. Coinbase One members automatically earn 4.25% on USDC held by Coinbase One members.
With USDC rewards, you have more control over your funds while being rewarded for participating.
Higher potential returns come with risk. Stablecoins are not covered by CDIC insurance, which means your funds are not protected like a traditional bank account. The GENIUS Act provides a framework for U.S. financial regulation, and USDC already meets many existing cryptocurrency rules, but there are still some risks.
If you want to err on the side of caution, spreading your money across different accounts or investments can reduce your risk. For others, USDC Rewards offers the opportunity to earn more than a regular savings account and be rewarded for your loyalty. You also have full access to your funds, so you can sell, send, or convert stablecoins at any time without locking them.
bottom line
For Canadians frustrated by low yields on their savings accounts, Coinbase’s USDC rewards program offers a compelling alternative. By paying out rewards in USDC, it helps you earn competitive returns while keeping your funds available – something that’s hard to find with traditional banks.
