Binance, the leading global cryptocurrency exchange, has recently announced the launch of Circle Internet Financial Ltd’s USDC Simple Earn Flexible Products. This new offering allows Binance users to earn up to 8 percent in their USDC holdings, with a subscription model based on a first come first served basis. The rewards are divided into two sections, with a real-time annual percentage rate (APR) of approximately 4 percent.
Additionally, Binance has set a bonus tiered APR for accounts with a balance of between 0.1 and 500 USDC, offering around 4 percent APR. Accounts with a balance of more than 500 USDC will only receive the real-time APR of about 4 percent. The USDC Flexible Products do not have a limit order, providing users with a decent income option.
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.
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 under investigation by the US SEC.
As of now, Circle’s USDC has a total market capitalization of about $33 billion and a 24-hour average traded volume of approximately $4.13 billion. In comparison, Tether’s USDT has a market value of around $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. Binance is now under the scrutiny of US regulators as part of the settlement plan, but this has not deterred the exchange from attracting more customers over time due to its robust regulatory framework.
Overall, the launch of Binance’s USDC Flexible Products marks a significant development in the cryptocurrency market, offering users the opportunity to earn rewards on their USDC holdings and potentially driving further adoption of stablecoins in the future.