Coinbase, one of the leading cryptocurrency exchanges, has announced a rewards program for its clients. The exchange’s US customers will earn crypto rewards for their holdings on the exchange.
Reward programs are one way through which crypto exchanges and other businesses in the industry seek to expand their client base.
The rewards program began running on the 1st of October, and it applies to crypto traders who use the USDC stablecoin.
According to the exchange, their customers will start earning 1.25% APY for each USDC they hold on Coinbase’s platform.
The firm’s clients will receive a return on their USDC holdings without necessarily having to execute any transactions using their crypto holdings.
The functioning of the rewards program
Coinbase has clarified that they will not be using any of the cryptocurrency held on their platform as loans or to manage any of the accounts that are associated with the platform.
The firm said that your crypto will always be yours, and all of your holdings will remain in your account at all times.
The rewards that are being offered to holders of USDC will come through the client simply storing their cryptocurrency on Coinbase’s secure platform.
The start of this rewards program could be a sign of Coinbase’s move into providing more benefits for the customers that trade on the platform.
A representative of the exchange said that they are always looking at their options to help them grow the Coinbase customer base and help these customers expand their crypto holdings.
Prior to the USDC rewards program, Coinbase began offering its clients knowledge about the various cryptocurrencies available on the platform through the Coinbase Earn initiative.
The representative added that they are invested in developing new products for the benefit of their customers and the creation of an open financial system.
Crypto firms and rewards programs
Crypto reward programs are relatively common in the industry, and it is a popular method used by companies to attract more clients.
Traders are naturally drawn towards cryptocurrencies that give them the highest possible rewards, and crypto related businesses are aware of this.
These reward programs play a vital role in the asset class’ bid for mass adoption.
A few weeks ago, Tron announced that it would be conducting an airdrop of its native token to new members of its Telegram community.
The firm offered thousands of Tron tokens to crypto enthusiasts who would become a part of its Telegram group chat. The give away attracted a lot of attention in the crypto community and drew several new traders to the Tron network.
Coinbase will be hoping that the rewards being offered on USDC will have a similar effect and bring more crypto traders into contact with the crypto asset.