- Cryptocurrency exchange Coinbase has revised its policy on USDC to USD conversions.
- Certain Coinbase users are exempted from the updated policy.
- The newly revised rates are set to be implemented in the upcoming month.
Cryptocurrency exchange fees on platforms vary, offering investors distinguished pricing models for conversions and purchases.
Against this backdrop, Coinbase, the second largest crypto exchange by trading volume, has updated its fee structure for asset conversion as part of a complete reform to its existing exchange policy.
USDC to USD Conversion over $75M to Attract Fees
On Tuesday, January 30, Coinbase unveiled new rates for exchanging USDC for the United States dollar (USD).
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The fee rates will vary according to transaction amounts per rolling 30-day period. USDC to USD conversion between $75 million and $150 million will incur a 0.10% fee, while transactions ranging from $150 million to $500 million will be subject to a 0.15% fee. However, transactions exceeding $500 million will face a fee of 0.20%, marking the highest rate imposed.
The new price model will come into effect on February 5, 2024, and all fees will be assessed directly from the USDC to USD conversion amount. However, these changes will not affect all investors.
Who is Immune?
Coinbase Prime clients who hold over $500 million of assets on the exchange or maintain an average of $100 million in USD/USDC over a calendar month are not subject to the newly imposed Conversion Fees.
Similarly, Coinbase Exchange Liquidity Program participants who meet the Tier 1 or Tier 2 requirements will be exempt from USDC Conversion Fees for any month they fulfill the eligibility criteria.
Coinbase is renowned for its relatively high trading fees, charging $10 to $25 for USD deposits and withdrawals.
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