The U.S. cryptocurrency exchange Coinbase now offers Dai users in six countries the opportunity to earn up to 2% interest.
According to a July 29 post on the Coinbase blog Dai holders (DAI) in the United States, the United Kingdom, the Netherlands, Spain, France and Australia can now achieve an annual percentage return (APY) of 2% with their new Dai Rewards program. Coinbase said it would distribute daily payments to customers who had at least USD 1 dai in their accounts, and that the initial rewards would be paid out within five business days.
The exchange introduced a similar system for USD Coin (USDC) holders in October.. The exchange originally offered monthly interest at 1.25%, which fell to APY 0.15% in June. Coinbase said that The rewards in both stablecoins offer a way to passively generate revenue in crypto assets “With yields on savings accounts and government bonds at record lows.”
Cryptocurrency exchange behaves like banks?
Coinbase offers Dai better prices than average Fiat savings accounts of 2% versus 1% or less. In addition, banks are generally seen as less risky than cryptocurrency exchanges.
Regulators in the United States officially gave the government-authorized banks the green light to protect cryptocurrencies on July 22However, it is currently not clear how traditional institutions want to use digital assets.