In the Era of 0.5% Savings Interest Rates, "Deposit Coins and Earn 4% Interest"

Coinbase Announces Dollar-Linked Stablecoin Savings Product
Significantly Higher Interest Rates Compared to Traditional Bank Savings
Promotes No Stability Issues
Bitcoin Recovers to $36,000

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Coinbase, the largest cryptocurrency exchange in the United States, announced that it will pay 4% interest on deposits of stablecoins, a type of cryptocurrency.

As a result, Coinbase's stock price rose 4% on the Nasdaq market that day, recovering its listing reference price of $250. Bitcoin recovered to the $36,000 range and is making another attempt to reach $40,000.

According to U.S. media, Coinbase announced on the 29th (local time) that it would pay high interest rates on stablecoin deposits.

Stablecoins are cryptocurrencies pegged 1:1 to the value of the U.S. dollar. Recently, the trading and usage of stablecoins have increased significantly, to the extent that U.S. financial authorities are considering whether to regulate them.

The 4% interest rate that Coinbase plans to pay is lower than the 8% interest rate offered through DeFi and other cryptocurrency savings, but it is significantly higher than the 0.5% savings interest rate in the U.S. banking sector. Coinbase explained that its interest rate is lower compared to other cryptocurrency savings services because it does not lend out the saved coins to others.

Coinbase's stablecoin savings are not legally guaranteed by U.S. authorities. For this reason, Coinbase avoids using terms like "savings" to evade regulation while emphasizing that stablecoin savings are safe and can yield high returns.

The U.S. cryptocurrency media Decrypt evaluated that Coinbase has entered into competition with cryptocurrency savings company BlockFi through its stablecoin savings.

Meanwhile, according to CoinMarketCap on the same day, the price of Bitcoin was trading at $36,300, up 5.2% compared to 24 hours earlier. Ethereum was trading at $2,219, up 3.9%, and Dogecoin was trading at 25 cents, up 3.5%.

This content was produced with the assistance of AI translation services.