Coinbase now offers interest to people holding USDC on its exchange

Starting today, Coinbase users will earn interest for every USDC they hold on the Coinbase exchange, the company announced Wednesday. 

UPDATE: Oct. 3, 2019, 9:18 p.m. CESTCoinbase got back to me with a clarification that “technically, customers aren’t earning interest from their USDC holdings due to the structure of the fund that is being allocated to distribute USCD and how customers need to report their earnings,” so the company prefers to use

USDC is a special kind of cryptocurrency called a stablecoin, whose value is pegged to the U.S. dollar. USDC are backed by actual dollars and redeemable for USD at a 1:1 ratio. 

Yearly yield or APY for USD