Coinbase, a prominent cryptocurrency exchange, recently announced a new fee structure for institutional clients engaging in USDC to USD net conversions exceeding $75 million. Effective immediately, a fee of 0.1% will be levied on such transactions. However, there are exemptions in place: clients holding assets exceeding $500 million with this exchange or maintaining an average balance of $100 million in USD or USDC over a calendar month will not be subject to this fee.
Coinbase Implements Fees for Converting USDC to USD
This fee policy, outlined by Coinbase on Monday, applies to institutional clients conducting USDC to USD net conversions surpassing $75 million within a rolling 30-day period. Transactions falling within the range of $75 million to $150 million will incur a 0.1% fee, while those between $150 million and $500 million will face a slightly higher fee of 0.15%. For conversions exceeding $500 million, the fee escalates to 0.2%.
It’s worth noting that USDC, the stablecoin in question, is issued by Circle, though it was surpassed by Tether’s USDT token in market capitalization last year. To provide further clarity, Coinbase Prime clients with assets exceeding $500 million on the platform or maintaining an average balance of $100 million in USD/USDC over a calendar month will be exempt from these USDC Conversion Fees.
Moreover, members enrolled in the Coinbase Exchange Liquidity Program, specifically those who qualify for Tier 1 or Tier 2, will also be spared from USDC conversion fees upon meeting their monthly eligibility criteria. A spokesperson from Coinbase emphasized the company’s commitment to innovation and responsiveness to user feedback in shaping their product offerings. The aim, the spokesperson stated, is to consistently deliver a premium user experience while aligning with the company’s broader business objectives.
In summary, Coinbase’s decision to implement fees on USDC to USD conversions over $75 million reflects its efforts to balance revenue generation with client satisfaction and market dynamics. Through exemptions and considerations for various client segments, Coinbase seeks to maintain its position as a leading cryptocurrency exchange while accommodating the needs of its institutional clientele.