Kraken, the US cryptocurrency exchange, is introducing automatic rewards for customers holding USDC, a dollar-pegged stablecoin, with eligible users earning returns without any manual setup or lockup requirements.
The feature, called Stablecoin Rewards, is available across Kraken, Kraken Pro and the company's Krak app, and activates immediately for existing USDC holders.
Standard users will earn a default rate of 1.75% annual percentage rate (APR), while subscribers to Kraken+, the exchange's paid membership tier, can receive up to 3.75% APR.
Rewards accrue by the second and are paid out weekly, and USDC balances remain fully tradable and withdrawable while earning, meaning users are not required to lock funds away for a fixed period.
Kraken said the programme requires no product switching and no additional configuration, with new customers able to deposit or swap into USDC to begin earning immediately.
The company disclosed that it receives an economic benefit from Circle, the firm that issues USDC, related to activity on the stablecoin, a common arrangement in such partnerships.
Kraken cautioned that reward rates are variable, not guaranteed, and may change at its discretion.
Geographic restrictions apply, and availability varies by jurisdiction.
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Kraken+ is a recurring paid subscription that renews automatically, though the company said it can be cancelled at any time.
The exchange also noted that its DeFi Earn product remains available as a separate option for users seeking on-chain yield.
The Recap
- Kraken launches automatic rewards on USDC balances held on platform.
- Default rate is 1.75 %APR for eligible users.
- Kraken+ subscribers can boost rewards up to 3.75% APR.
