On July 29, it has been reported that Dai (DAI) holders in the United States, UK, Netherlands, Spain, France, and Australia are now eligible to earn a 2% annual percentage yield (APY) through its new program Dai Rewards.
However, Coinbase said that it would distribute payments daily to customers with at least $1 of Dai in their accounts, with initial rewards paid within five business days.
The exchange launched a similar system for USD Coin (USDC) holders in October. Initially, the exchange offered 1.25% interest paid monthly, but this was reduced to 0.15% APY in June.
Dai holders can now earn higher interest through Coinbase than with most bank savings accounts https://t.co/79i5qsjjgZ — Cointelegraph (@Cointelegraph) July 29, 2020
Coinbase said that rewards on both stablecoins offer a means to passively generate income on crypto-assets “with yields on savings accounts and government bonds at record lows.”
As per the report, Coinbase is offering Dai better rates than the average for fiat savings accounts, 2% vs. 1%, or less. Then again, banks are widely seen as less risky than crypto exchanges.
Thus, regulators in the United States officially gave the green light for federally chartered banks to custody cryptocurrency on July 22, but it’s not clear at this time how traditional institutions intend to utilize digital assets.