USD Coin rewards FAQ

USDC IS NOT LEGAL TENDER. USDC IS A DIGITAL CURRENCY AND COINBASE HAS NO RIGHT TO USE ANY USDC YOU HOLD ON COINBASE. COINBASE IS NOT A DEPOSITORY INSTITUTION, AND YOUR USDC WALLET IS NOT A DEPOSIT ACCOUNT. YOUR USDC WALLET IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

What is USDC Rewards?

USDC Rewards allows eligible customers to earn rewards for holding USDC in Coinbase. To be eligible, you must:

• Be a US customer (excluding Hawaii residents) 
• Have a verified Account level 2
• Hold at least $1 of USDC in your Coinbase account 

All eligible customers will be automatically opted into USDC Rewards. There is no maximum amount of USDC you can hold.

There are no fees associated with USDC Rewards. For fees around trading USDC, visit our USDC FAQ.

How are rewards distributed?

Coinbase distributes rewards, earned for the days in which you have a balance of at least $1 of USDC on Coinbase, every month. The higher the balance, the more rewards you earn.

• Rewards are distributed within the first 5 business days of the following month into your USDC wallet. 
• If you withdraw your entire USDC balance at any time before the end of a month, you will still receive the rewards you’ve earned.

Can I opt out?

Yes, but if you decide to opt out of USDC Rewards, you will forfeit all earned rewards that have not yet been distributed. If you remain opted out, you will no longer receive USDC rewards until you opt back in.

To opt out of USDC Rewards:

• On web: Go to Settings and select Financial Services. From there, you can toggle the USDC Rewards icon off to opt out. 
• On mobile: Go to Settings on the iOS or Android app and select Financial Services. From there, you can toggle the USDC Rewards icon off to opt out. 

Why is the pending amount an estimate?

The amount shown under Rewards pending is an estimate of the rewards that have not been distributed to your account. After the given month has ended, Coinbase will calculate the finalized amount of rewards earned and will distribute the rewards within 5 business days. 

APY + Taxes

What is USDC Rewards Annual Percentage Yield and how is it calculated?

USDC Rewards Annual Percentage Yield (APY) means the percentage rate reflecting the total amount of USDC rewards earned, based on the then-current USDC Rewards Rate and end-of-month compounding for a 365-day period. 

For more information, please check out the User Terms and Agreement. 

What is the current USDC Rewards APY rate?

As of October 2nd, 2019, the APY for USDC Rewards is 1.25%. 

What is the current USDC Rewards rate?

USDC Rewards Rate is the annual rate of rewards earned on a USDC wallet, which does not reflect compounding. As of October 2nd, 2019, the USDC Rewards rate is 1.242895%. 

Will the APY be the same every month?

The APY rate is set by Coinbase and can change at anytime and you will be notified. Unless otherwise stated, any updates made will not be effective until the first day of the calendar month.

Will I need to report earnings on my USDC Rewards?

US customers that are subject to US tax reporting are required to report their earnings from USDC Rewards. US customers that earn over $600 in USDC rewards will receive a 1099-MISC from Coinbase. You can learn more about the 1099-MISC on the official website of the IRS.

Each reward distributed at the end of the month will populate as a line item in your Transaction history report. To download your transaction history, visit our reports page. 

Other

Where can I find more information on USD Coin?

To learn about USD Coin, visit our USDC FAQ.

Will I earn rewards on my USDC held in my Coinbase Pro account?

No, USDC held on Coinbase Pro is not eligible for USDC Rewards. 

My account has been restricted. Will I continue to earn rewards? 

If your account has been restricted, you’ll continue to earn rewards, however, your rewards may not be accessible during this time.

I need additional assistance with my issue. What do I do?

If you have read through the FAQ and have a specific question regarding USDC Rewards, please submit a ticket through our support form. Please select Other as the category and Other request or feedback when filing your request.