Coinbase has announced it will be improving its trading platform with the introduction of Coinbase Advanced, a specialized trading platform. Introducing this specialized trading platform means users are now eligible to earn a 4% increase/reward "on the USDC they hold on Coinbase or any USDC used in open orders."
According to reports from Blockworks, the crypto exchange is actively introducing several improvements, including adding a total of 237 new USDC trading pairs.
Let's take a step back. The same Coinbase making these massive improvements in their trading platform faces a huge issue with the Securities and Exchange Commission over regulatory matters.
As a result of the constant regulatory problems with the SEC, many held the opinion that it might lead to the downfall of the crypto exchange. But right now, the reverse is the case as improvements in Coinbase yield farming and trading facilities are set to attract more users. Besides attracting users, the new developments around Coinbase show their commitment to developing the crypto industry despite legal battles from the SEC.
Coinbase to Disrupt Traditional Banks with Their New Offerings
Many people trust commercial banks to be a safe place to save their money and earn interest on their savings. However, Coinbase is looking to shake up the traditional financial institution model with its new crypto exchange offerings. Their goal is to offer competitive interest rates to customers who save with them, challenging the status quo of traditional banks.
To achieve this aim, they added a new offering which made the USDC one of Coinbase's yield assets. In the same way, bank customers earn rewards when they save or make transactions using a bank; that is what crypto users are set to gain from Coinbase with their new offering.
There will be a 4% yield on USDC holdings, allowing traders and investors to have another opportunity where they can maximize and extend their investments in the crypto exchange. When compared to what the banks are offering, one can see that Coinbase has made a massive effort by offering a 4% yield. The majority of commercial banks mostly offer modest APYs ranging from 0.01% to 0.50% on savings accounts.
This is quite low from what Coinbase will offer their customers at about 4% to save and hold USDC on their improved trading platform. What users have to do to get this reward is also pretty straightforward. All they would need to do is to own the required amount of USDC on Coinbase and use them on open orders.
Coinbase Keen on Promoting Crypto
Despite the ongoing legal battle with the Securities and Exchange Commission, Coinbase has announced they are very keen on seeing the success of the crypto industry.
In a series of tweets and filings, the company argued they are free from all the allegations the SEC is making against them. According to the crypto exchange, they said cryptocurrencies should not be classified as investment contracts because they are not securities.
"The assets trading on Coinbase’s secondary market platform are not within the SEC’s authority because, contrary to the SEC’s assertion, they are not “investment contracts” and therefore not “securities," Coinbase said in their filing.