Binance Launches USDC Flexible Products, Offering Users Up to 8% APR Rewards

Binance, one of the leading global cryptocurrency exchanges, 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 and a bonus tiered APR for accounts with balances between 0.1 and 500 USDC.

Users with balances of more than 500 USDC will also receive a real-time APR of about 4 percent. The USDC Flexible Products do not have a limit order, providing users with a decent income option. Bonus tiered APRs are distributed to users’ spot wallets daily, while accrued real-time APRs are sent to users’ Earn wallets 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.

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 is likely to intensify in the near future, with Ripple Labs CEO suggesting that the US SEC will target Tether’s USDT next. Tether CEO Paolo Ardoino, however, criticized Ripple for its plans to launch a US-backed stablecoin while being 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, with Binance now operating under a more 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 attractive rewards on their USDC holdings. With the competition between stablecoins heating up, it will be interesting to see how this new offering impacts the broader cryptocurrency ecosystem in the coming months.