Coinbase to charge fees on USDC to USD conversions over $75 million

Quick Take

  • Cryptocurrency exchange Coinbase said it will begin charging a fee of 0.1% when institutional clients make USDC to USD net conversions in excess of $75 million.
  • Clients that hold over $500 million of assets with Coinbase or keep an average balance of $100 million in USD or USDC over a calendar month will be exempt.

Coinbase said Monday that it will begin charging a fee when institutional clients make USDC to USD net conversions in excess of $75 million "per rolling 30-day period."

Conversions between $75 million and $150 million will incur a 0.1% fee, while transactions of $150 million to $500 million will see a fee of 0.15%. USDC to USD conversions over $500 million will be charged 0.2%, the company said.

Circle is the issuer of the USDC, which was last year overtaken by Tether's USDT token as the largest stablecoin by market cap.

Some clients exempt from new fees

"Coinbase Prime clients with over $500 million of assets on platform or holding on average $100 million in USD/USDC over a calendar month are exempt from USDC Conversion Fees," the company added.

Additionally, members of the Coinbase Exchange Liquidity Program "who have qualified for Tier 1 or Tier 2" will be exempt from USDC conversion fees whenever they meet their monthly eligibility.

"Coinbase is committed to innovating our product offerings and listening to user feedback to ensure we deliver the premium experience that our customers expect while also driving our business goals," a company spokesperson said.


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.

Editor

To contact the editor of this story:
Nathan Crooks at
[email protected]