The interest rate for most checking accounts is 0% in Canada, laments a cofounder of Coinbase.
“That makes zero sense,” says Brian Armstrong, who heads the crypto titan as chief executive officer.
Moving forward, “all Canadians can earn 4.1% uncapped rewards on USDC on Coinbase, and up to 4.5% with Coinbase One,” he stated on X.
The USDC is a 1:1 fiat backed crypto asset (or “stablecoin”) issued by Circle and approved by regulators in Canada.
With weekly payouts, the launch of USDC rewards in Canada adds a new contender among rival personal finance products such as GICs, chequing and savings accounts, and loyalty programs, according to Lucas Matheson, who serves Coinbase as Canadian Country Director.
“Coinbase believes that loyalty deserves to be rewarded,” he says. “Unlike the personal finance experience of many Canadians, typified by high fees, slow transaction times, and cumbersome customer service, USDC rewards is part of Coinbase’s plan to give Canadians access to an updated financial system.”
Matheson says users can sell, send, or convert their USDC without restrictions.
The move builds on Coinbase unveiling an ambitious expansion to Base during the “New Day One” event, among other recent news.
Ranked as the world’s third-most crypto-aware nation, Canada possesses an “enthusiastic tech ecosystem that has the potential to be a leader in the global crypto economy,” according to Coinbase, which employs more than 200 full-time workers in Canada since hiring here starting in 2021.
In related news, Toronto-based fintech firm Stablecorp recently raised $2.5 million in strategic growth capital to expand and upgrade QCAD, a Canadian dollar-denominated stablecoin.
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