Earn interest through lending

USDC is a digital currency and NOT legal tender. Coinbase is not a depository institution, and your USDC wallet is not a savings or a checking account. Your USDC wallet is not insured by the Federal Deposit Insurance Corporation (FDIC) or the securities investor protection corporation (SIPC).

What is USDC Lending?

USDC Lending allows eligible customers to earn interest for lending their USDC to Coinbase. To be eligible, you must:

  • Be a US customer (excluding Hawaii, New York, and Vermont residents) 

  • Have a verified Account level 2

  • Hold at least $1 of USDC in your Coinbase account 

  • Opt-in and accept our Terms

There is no maximum amount of USDC you can lend out to earn interest and there are no fees associated with USDC Lending. 

When can I start lending my USDC?

All eligible customers are currently invited to pre-enroll for USDC Lending by joining our waitlist. We will invite customers off the waitlist as the program becomes available. Once you are invited off the waitlist, you will automatically start earning interest on your entire USDC balance.

How is interest distributed?

Coinbase distributes interest, 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 interest you earn.

  • Interest is 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 interest you've earned.

Can I opt out?

Yes, but if you decide to opt out of USDC Lending, you will forfeit all earned interest that has not yet been distributed. If you remain opted out, you will no longer receive interest on our USDC until you opt back in.

To opt out of USDC Lending:

  1. From your Settings select Financial Services.
  2. You can toggle the USDC Lending icon off to opt out. 

Why is the pending amount an estimate?

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

Can I continue to use my USDC if I lend it to Coinbase?

USDC lent out to Coinbase can be traded or sent, just like the USDC you may currently hold in your account. When you trade or send USDC that you have loaned to us, we can usually enable you to do so without delay, although you will cease earning interest on any crypto that you choose to trade or send. In extreme market conditions there could be a delay of up to 7 days before you can trade or send.

What does Principal Guarantee mean?

While your USDC is no longer custodied by Coinbase, Coinbase will always guarantee the amount you deposited. Residual risks may remain and these are outlined in our User Terms

APY + Taxes

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

USDC Lending Annual Percentage Yield (APY) means the percentage rate reflecting the total amount of USDC interest earned, based on the then-current USDC Lending 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 Lending APY rate?

As of June 21, 2021, the APY for USDC Lending is 4.00%. 

What is the current USDC Lending rate?

USDC Lending Rate is the annual rate of interest earned on a USDC wallet, which does not reflect compounding. As of June 21, 2021, the USDC Lending rate is 3.928487%. 

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 by means which include publication of an updated interest rate on this page. Unless otherwise stated, any updates made will not be effective until the first day of the calendar month.

Will I need to report interest earned on my USDC?

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

Each interest payment 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


Where can I find more information on USD Coin?

To learn about USD Coin, visit our USDC FAQ.

Can I lend USDC held in my Coinbase Pro account?

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

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

If your account has been restricted, you'll continue to earn interest, however, your interest payments 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 Lending, please submit a ticket through our support form. Please select Other as the category and Other request or feedback when filing your request. 


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