Coinbase Counters Robinhood With 7% USDC Yield

Coinbase just increased its yield on USDC holdings to 7.02 percent. This new High Yield tier is nearly double the 3.63 percent return offered by their standard Core tier. The move comes shortly after Robinhood launched its own campaign promising a similar 7 percent yield.

Both platforms are routing these customer deposits through Morpho. This is a decentralized lending protocol that manages billions in assets. By using this protocol, these companies can provide higher returns than traditional savings accounts.

Traders looking for yield on their dollar reserves now have two major options with very similar incentives. It will be interesting to see if other exchanges follow suit to keep their users from moving funds elsewhere. Keep an eye on how these decentralized protocols manage the sudden influx of platform deposits as this competition continues.