Coinbase has introduced a Bitcoin savings account offering 4.5% APY on BTC deposits, becoming the first major US-regulated exchange to offer yield on Bitcoin without requiring users to lend their coins.
How It Works
- 4.5% APY on BTC deposits
- No lockup period — withdraw anytime
- Yield generated from institutional lending and staking
- FDIC-style insurance up to $500K through partner
- Available to all US Coinbase users
The product competes with high-yield savings accounts at traditional banks while providing Bitcoin price appreciation on top. Critics note the yield comes from lending BTC to institutional borrowers, which carries counterparty risk despite insurance.
