<p>Crypto exchange Coinbase has slashed rewards on USDC stablecoin holdings by about 90%.</p> <p>Until now, Coinbase users earned 1.25% annual percentage yield (APY) on their USDC funds. That reward now has been <a href="https://decrypt.co/31011/coinbase-slashes-usdc-stablecoin-rewards-interest">cut</a> to just 0.15% APY, effective today.</p> <p>Coinbase did not specify the rationale behind the move, but the reduction is <a href="https://www.valuepenguin.com/banking/average-savings-account-interest-rates">in line</a> with other major banks and fintech firms.</p> <p>Coinbase <a href="https://blog.coinbase.com/start-earning-crypto-rewards-on-coinbase-today-d54d12e9aac">launched</a> the USDC rewards initiative last October for U.S. customers. Rewards accrue daily and are distributed on a monthly basis.</p> <p>The USDC stablecoin is backed by CENTRE — a consortium co-founded by Coinbase and Circle. It is the <a href="https://www.theblockcrypto.com/linked/64947/total-stablecoin-supply-10-billion">second-largest</a> stablecoin with over 7% market share, while Tether (USDT) dominates the space with over 85% market share.<br /> <br /> The reward cut comes at a time when stablecoins are rising in popularity. The total supply of stablecoins <a href="https://www.theblockcrypto.com/linked/64947/total-stablecoin-supply-10-billion">hit</a> $10 billion-mark for the first time last month.</p>