Binance Launches USDC Flexible Products, Offering Users Up to 8% APR Rewards” – A Game Changer in the Cryptocurrency Market

Binance, the leading global cryptocurrency exchange, has recently announced the launch of Circle Internet Financial Ltd’s USDC Simple Earn Flexible Products, offering users the opportunity to earn up to 8% APR rewards on their USDC holdings. This move by Binance is aimed at providing users with a flexible income option, with a subscription model based on a first come first served basis.

The USDC Flexible Products offering by Binance includes a real-time annual percentage rate (APR) of approximately 4%, with a bonus tiered APR of around 4% for accounts holding between 0.1 and 500 USDC. Accounts with a balance of more than 500 USDC will only receive the real-time APR of about 4%. The distribution of bonus tiered APRs is sent to users’ spot wallets daily, while accrued real-time APR is sent to users’ Earn wallet every minute.

The promotion period for the USDC flexible products is set to end on June 30, 2024, after which users will be entitled to real-time APR rewards only. Binance emphasized that all users holding open positions for USDC Flexible Products during the promotion period will receive both Real-Time APR and Bonus Tiered APR rewards.

The launch of Binance’s USDC Flexible Products is expected to have a significant impact on the mass adoption of US dollar-backed stablecoins. The competition between stablecoins, such as USDC and USDT, is likely to escalate in the near future. Ripple Labs CEO has suggested that the US SEC will be targeting Tether’s USDT next, while Tether CEO Paolo Ardoino criticized Ripple for its plans to launch a US-backed stablecoin while already under investigation by the US SEC.

In terms of market capitalization and trading volume, Circle’s USDC currently has a total market capitalization of about $33 billion and a 24-hour average traded volume of about $4.13 billion, while Tether’s USDT has a market value of about $110 billion and a daily average traded volume of about $20 billion.

The relationship between Binance and the United States has improved significantly since a historical settlement, with Binance now operating under a more robust regulatory framework. This improved relationship is expected to attract more customers to Binance over time.