Effective December 15, 2025, Coinbase limited its USDC rewards program. The company previously announced the policy shift on December 11.
Only members of the "Coinbase One" subscription service now earn rewards. These subscribers retain a 3.5% annual return on their USDC holdings. Free-tier users, previously eligible, will no longer receive any yield on the stablecoin held on the platform.
Coinbase implemented the strategic shift to strengthen subscription revenue streams. The decision also responds to the broader macroeconomic environment. Recent Federal Reserve interest rate cuts make offering high yields on stablecoin holdings more challenging.
Coinbase funds the rewards program using its own resources. The company does not fund the program by lending customer assets.