Consumer-first finance: How USDC Rewards are changing the game

The potential for greater yields comes with different risks. Stablecoins aren’t protected by CDIC insurance, and the regulatory landscape around them remains uncertain; however, Coinbase One members can access account protection upwards of CA$250,000 for Premium members. Coinbase offers an alternative to conventional banking—one that prioritizes accessibility, transparency, and competitive returns.

We’re diving into what you need to know about USDC Rewards to decide whether this approach to consumer-first finance is right for you.

The challenge with traditional banks

Anyone with a traditional savings account knows that you won’t earn much on your balance. Big banks typically offer up to 1.15%—and some accounts pay almost nothing. In fact, it’s still common to see savings rates hovering near 0%.

On top of that, many banks charge monthly fees (often waived only if you maintain a hefty minimum balance) and offer little value through loyalty programs. 

It’s no surprise Canadians are losing faith in the system. In a recent Coinbase survey, 83% said Canada’s financial system needs an overhaul, and 91% believe banks put profits ahead of customers. It’s easy to see why alternatives like cryptocurrency exchanges are rising in popularity.

Demand for modern, digital-first financial tools is growing

Canadians are looking for more from their financial institutions—transparency, accessibility, and real value. Many no longer see banks as a place to store their money, but rather seek them as partners to help them grow it. They want to be able to move their funds without unnecessary restrictions, which helps explain the increasing demand for digital-first financial tools

Research from FICO supports this, with 90% of Canadians saying they prioritize customer service over financial products offered by a bank.

What stablecoins are—and why they matter

If you’re familiar with cryptocurrency, you probably know that stablecoins are digital assets pegged to currency. For example, 1 USDC—a popular stablecoin—is tied to the value of US$1. This provides stability while maintaining the speed and flexibility that make digital assets so attractive. 

Users can make transactions, save, and earn rewards on their stablecoins without the volatility often associated with cryptocurrencies. Some experts even believe that stablecoins and other crypto technologies could compete with, and eventually even displace, today’s traditional payment systems. 

Cryptocurrency exchanges allow users to make faster payments, pay low fees, and have better access to financial tools. For example, Coinbase has partnered with Shopify to accept USDC payments on select Shopify stores, giving users a convenient payment option that doesn’t rely on traditional banking networks.

Inside Coinbase’s USDC Rewards (and why it could be a game changer)

Coinbase’s USDC Rewards show how finance is shifting to put consumers first. The platform focuses on customer success, using technology to help Canadians grow and manage their money. 

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• Account minimum: $1
• Trading fees: 0% – 2% per transaction. Varies by transaction amount and type (Simple, Advanced)
• Welcome offer: None at this time

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Here’s how it works: you earn 3.85% uncapped rewards* on your daily USDC balance, and the rewards you earn are deposited at the end of the week. Coinbase One members earn 4.25% automatically on their USDC holdings.

With USDC Rewards, you can enjoy more control over your money while being rewarded for your participation.

Higher potential returns come with risks. Stablecoins aren’t covered by CDIC insurance, which means your money isn’t protected like it is in a traditional bank account. The GENIUS Act provides a framework for U.S. financial regulation, and USDC already meets many existing crypto rules—but some risks remain.

If you prefer to play it safe, spreading your money across different accounts or investments can reduce risk. For others, USDC Rewards offers the chance to earn more than a regular savings account and be rewarded for your loyalty. You’ll also have full access to your funds, so you can sell, send, or convert stablecoins anytime without lock-ups. 

The bottom line

For Canadians frustrated with low-yield savings accounts, Coinbase’s USDC Rewards program offers a compelling alternative. By paying rewards on USDC, it helps you earn competitive returns while keeping your money accessible—something that’s hard to find with traditional banks.

Stablecoins like USDC may play a growing role in the future of finance, combining the stability of regular money with the speed and efficiency of digital technology. This makes them a bridge between today’s banks and tomorrow’s digital economy.

So, for those looking to save, grow, and move money faster and more freely, USDC Rewards offers a new option that better aligns with Canadians’ expectations of what modern finance should look like. 

Read more about crypto:

• Canadian stablecoins push ahead amid growing regulatory calls
• Crypto investors lose billions in biggest-ever liquidation event
• Stablecoins may offer a faster, cheaper way to send money overseas
• Cryptocurrency exchange Cryptomus fined record $177M by Fintrac

About Jessica Gibson

Jessica Gibson is a personal finance writer with over a decade of experience in online publishing. She enjoys helping readers make informed decisions about credit cards, insurance, and debt management.

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