Coinbase has increased the interest rate on USDC held on the exchange from 2% to 5%, a 150% increase. This reward mechanism is funded directly by Coinbase and is not subject to SEC scrutiny. The move is an attempt to increase adoption of USDC, which has lagged behind its rival Tether’s USDT in terms of market share in the past 12 months.Circle CEO Jeremy Allaire cited regulatory crackdowns in the U.S. as a significant factor in USDC’s market capitalization dip. The stablecoin also faced challenges when $3.3 billion of its reserves became trapped at Silicon Valley Bank during the U.S. banking crisis, causing the stablecoin to detach from its dollar peg momentarily.USDC’s market share hit a two-year low at the end of July, falling to 21.91% from a high of 33.27% before the crisis. Meanwhile, USDT climbed from 49.48% to 68.87% market share during the same period. USDC has struggled to regain the share it lost to USDT since the start of the year but has begun to show signs of momentum in recent weeks. Coinbase has increased the interest rate on USDC held on the exchange from 2% to 5%, a 150% increase. This reward mechanism is funded directly by Coinbase and is not subject to SEC scrutiny. The move is an attempt to increase adoption of USDC, which has lagged behind its rival Tether’s USDT in terms of market share in the past 12 months. Circle CEO Jeremy Allaire cited regulatory crackdowns in the U.S. as a significant factor in USDC’s market capitalization dip. The stablecoin also faced challenges when $3.3 billion of its reserves became trapped at Silicon Valley Bank during the U.S. banking crisis, causing the stablecoin to detach from its dollar peg momentarily. USDC’s market share hit a two-year low at the end of July, falling to 21.91% from a high of 33.27% before the crisis. Meanwhile, USDT climbed from 49.48% to 68.87% market share during the same period. USDC has struggled to regain the share it lost to USDT since the start of the year but has begun to show signs of momentum in recent weeks.

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Information	Details
Geography	North America
Countries
Sentiment	neutral
Relevance Score	9
People	Jeremy Allaire,
Companies	Circle, SEC, Silicon Valley Bank, Jeremy Allaire, Coinbase
Currencies	Ethereum, USD Coin, Tether, Bitcoin
Securities	None