Coinbase Implements Fees for USD Coin (USDC) Conversion
Cryptocurrency exchange Coinbase has announced that it will now charge fees for converting the stablecoin USD Coin (USDC) into USD.
Details of the Conversion Fees
According to a recent post on Coinbase’s website, institutional clients will be subject to fees for net USDC to USD conversions over $75 million within a 30-day period.
The fees will be determined based on the maker-taker fee model used by Coinbase. The amount of the fee depends on the size of the conversion, with larger conversions incurring higher fees.
Coinbase Prime clients with assets over $500 million or an average of $100 million in USD/USDC throughout a month will be exempt from these conversion fees. Participants in Coinbase’s exchange liquidity program meeting certain requirements will also have their fees waived.
Coinbase’s Efforts to Facilitate the Transition to USDC
In December 2023, Coinbase encouraged its customers to switch from USDT to USDC, highlighting the reliability and reputation of USDC as a fully backed digital dollar.
To facilitate this transition, Coinbase temporarily waived conversion fees from USDT to USDC in most regions within its trading section.
In March 2023, the exchange temporarily halted conversions between USDC and USD following the collapse of Silicon Valley Bank. Conversions were paused over the weekend and resumed on Monday.
Hot Take: Coinbase Implements Fees for USDC Conversion
Coinbase’s decision to introduce fees for converting USDC into USD reflects its ongoing efforts to improve its product offerings and incorporate user feedback. By aligning with customer expectations and advancing its business objectives, Coinbase aims to deliver a premium experience for its users. While fees may inconvenience some institutional clients, exemptions are in place for high-value clients and participants in Coinbase’s exchange liquidity program. This move also follows Coinbase’s previous initiatives to encourage the adoption of USDC over USDT and ensure the stability and reliability of the stablecoin.
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