Coinbase to Charge Higher Fees for USDC to USD Conversions
Main Idea
Coinbase is introducing a new fee for large USDC-to-USD conversions and reigniting its expansion efforts in India to stabilize revenue and explore blockchain development opportunities.
Key Points
1. Coinbase will introduce a 0.1% fee on USDC-to-USD conversions for net amounts over $5 million within a 30-day period, starting Aug. 13.
2. Previously, Coinbase charged fees only for conversions above $40 million, with rates ranging from 0.05% to 0.2%.
3. The fee adjustment is part of Coinbase's efforts to stabilize revenue after two consecutive quarters of missed earnings expectations, including a 95% drop in Q1 net income.
4. Coinbase is expanding in India, with its legal chief meeting Karnataka’s IT minister to discuss blockchain development and public infrastructure projects.
5. Coinbase previously halted UPI support in India in 2022 but is now re-engaging with the market to support local blockchain development.
Description
The move was announced after two consecutive quarters of missed earnings and is part of the exchange’s efforts to stabilize revenue. While Coinbase previously charged fees only above $40 million in conversions, the new threshold is a big shift. Senior product manager Will McComb called the policy an “experiment” amid backlash from users who compare it to traditional banking fees. Some analysts, however, suggest the fee may counter arbitrage involving Tether. Meanwhile, Coinbase is reigniting its...
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