Is Coinbase USDC 5.10% APY safe?
Have a Coinbase account hodling a small amount of crypto. The app has been advertising UDSC 5.10% APY and wanted to ask others here if they have any experience dealing with USDC. I understand that the rate might vary as the FED bumps up or down their rates but aside from that.. wondering about USDC itself AFAIK it’s as safe as dollars. And you’ll be getting over 5% for deposits now… any gotchas here? TC: 250K YOE: 10
If not FDIC then it’s just as safe as FTX 5% APY was….
Was FTX a publically traded and audited company?
Why take risk over highly insured 5% options?
It’s very transparent - so ironically the biggest risk with USDC is the traditional finance system that crypto is trying to disrupt. Circle stores its funds in traditional banks, as we saw last year with SVB’s collapse USDC was subsequently depegged from the USD, though it recovered. So it’s basically about as safe as a bank is. IIRC Circle was looking into diversifying their funds between more banks, haven’t kept up with that news though
Why would you even risk a .1% because there are larger institutions that are FDIC, SIPC, and NCUA insured? Plenty of 5% options with little to no risk. SMH. 🤦♂️
IMO it’s as safe as Coinbase is solvent. I don’t think it’s FDIC insured so it’s only backed by Coinbase.