Canadians just got a bold new way to earn passive income, as Coinbase unveils weekly 4.1% USDC rewards—paid automatically with zero lockups or restrictions.
Coinbase Rolls out Weekly USDC Rewards in Canada
Crypto exchange Coinbase (Nasdaq: COIN) announced on Sept. 16 that Canadians can now earn rewards on holdings of USD Coin (USDC). The company stated: “We are excited to announce the launch of USDC rewards in Canada, allowing Coinbase users to simply hold USDC and automatically earn 4.1% paid weekly.” The program delivers a 4.1% return on all balances, while Coinbase One subscribers can access an elevated 4.5% rate on up to $30,000 of holdings. Rewards accrue automatically, with no opt-in required, and users can withdraw, convert, or transfer their stablecoins at any time without restrictions.
Chief executive officer Brian Armstrong underscored the motivation for the rollout on social media platform X:
The interest rate for most checking accounts is 0% in Canada. That makes zero sense. So, from today, all Canadians can earn 4.1% uncapped rewards on USDC on Coinbase, and up to 4.5% with Coinbase One.
The company contrasted this program with traditional Canadian financial products, such as chequing accounts, guaranteed investment certificates, and loyalty programs, which often provide little to no yield. Coinbase also highlighted survey data showing that 83% of Canadians believe the global financial system needs reform, while 91% feel banks prioritize profit over customer success.
The stablecoin at the center of the rewards program, USDC, is issued by Circle and pegged 1:1 to the U.S. dollar. Each token is fully backed by cash and short-term U.S. Treasuries held in regulated financial institutions. Coinbase clarified that the rewards are structured as a loyalty program rather than a securities product or savings account, and balances are not insured by the Canada Deposit Insurance Corporation or the Canadian Investor Protection Fund. While reward rates are subject to adjustment, Coinbase framed the initiative as part of its broader effort to integrate stablecoins into Canada’s financial system as a more flexible and accessible option.
