USDC Rewards FAQ

USDC is not legal tender. USDC is a digital currency. Coinbase has no right to use any USDC that you hold at Coinbase. Coinbase is not a depository institution, and your USDC balance is not a deposit account. Your USDC balance 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 customer in one of the following countries

    • Andorra, Angola, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahamas, Bahrain, Barbados, Belgium, Benin, Bermuda, Bolivia, Botswana, Brazil, British Virgin Islands, Brunei Darussalam, Bulgaria, Burkina Faso, Cameroon, Cayman Island, Chile, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, Ecuador, El Salvador, Estonia, Finland, France, Georgia, Germany, Ghana, Gibraltar, Greece, Guatemala, Guernsey, Haiti, Honduras, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Isle of Man, Jamaica, Jersey, Jordan, Kazakhstan, Kenya, Korea (South), Kuwait, Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Madagascar, Maldives, Mali, Malta, Mauritius, Mexico, Monaco, Mongolia, Montenegro, Namibia, Nepal, Netherlands, Nicaragua, Nigeria, Norway, Oman, Pakistan, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Romania, Rwanda, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, the United Kingdom, the United States (excluding HI), Togo, Trinidad and Tobago, Tunisia, Turkey, Uganda, United Arab Emirates, Uruguay, Uzbekistan, Venezuela, or Zambia

  • 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.

Where do USDC Rewards come from?

  • Coinbase has no right to use any USDC in your Coinbase account. USDC Rewards is a loyalty program that is funded with Coinbase’s own funds. The program is designed to incentivize more of our customers to use Coinbase services to store their USDC.

  • We do not lend or take any action with your assets, unless you specifically instruct us to. 

  • We reserve the right to change or discontinue USDC Rewards at any time by reasonable means of notice (including e-mail).

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 your USDC balance, the more rewards you earn.

  • Rewards accrue daily based on your balance on the day, and the rewards rate you are earning.

  • Accrued rewards are typically distributed within the first 5 business days of the following month into your USDC balance. 

  • 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. The rewards you have previously earned and which have been distributed to your account do not expire.

To opt out of USDC Rewards:

  • On web: Sign in to your account and select the Assets tab. On the right rail, select the rewards earned module where you can opt out of rewards. (Note that the module will say Earn rewards if you're not currently opted in to any rewards.) 

  • On mobile: Navigate to My Assets, then Select the staked asset, and scroll down to view the 'Unstake' option

What is the current USDC Rewards rate?

The USDC Rewards rates can vary depending on your country, ongoing experimentation, and account type. Retail customers can see the latest applicable rates directly within their accounts. Institutional customers of Coinbase Prime or Exchange can speak with their account manager for current applicable rates.

Will the APY be the same every month?

The APY rate is set by Coinbase and can change at any time. We will notify you if the APY changes. 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 for tax purposes?

Tax rules and reporting rules differ from country to country. Users outside of the US should consult their tax advisor for the up to date information.

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

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


Where can I find more information on USDC?

To learn about USDC, 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. What do I do?

If you have read through this page and still 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.