United Sates leading cryptocurrency exchange Coinbase is now offering for its users in six countries holding Dai to earn upto 20% in return from rewards.
In line with a recent official post on 29th July on the Coinbase blog, Dai [DAI] holders within the U.S., U.K., Netherlands, Spain, France, and Australia are now eligible to earn 2% annual percentage yield (APY) via its new program Dai Rewards. Coinbase revealed that it might distribute payments daily to users with a min of $1 of Dai in their accounts, with initial rewards paid within five business days.
The exchange launched an identical system for USD Coin [USDC] holders earlier in October. Initially the exchange offered 1.25% interest paid monthly, but this was reduced to 0.15% APY later in June. Coinbase said rewards on both stablecoins offer a way to passively generate income on crypto assets “with yields on savings accounts and government bonds at record lows.”
Banks Seen Less Risky Than Crypto Exchanges
Coinbase is offering Dai better rates than the typical for fiat savings accounts — 2% vs. 1% or less. But, banks are widely seen as less risky than cryptocurrency exchanges.
Regulators within the U.S. officially gave the green light for federally chartered banks to custody cryptocurrency earlier on 22nd July, but it’s unclear at this point how traditional institutions will be utilising digital assets.