New Fee Structure for Institutional Clients at Coinbase.
On Monday, Coinbase, a prominent cryptocurrency exchange, announced that it will start implementing fees for institutional clients converting large amounts of USDC, a stablecoin, to USD. This change applies when the net conversions exceed $75 million within 30 days.
The new fee structure is tiered based on the conversion amount. For conversions between $75 million and $150 million, a fee of 0.1% will be charged. Transactions ranging from $150 million to $500 million will incur a 0.15% fee. For conversions exceeding $500 million, the fee will increase to 0.2%.
USDC, issued by Circle, was surpassed last year by Tether’s USDT token as the largest stablecoin by market cap. Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to a currency like the USD.
Coinbase has outlined exemptions from these new fees for some of its clients. Specifically, Coinbase Prime clients with over $500 million in assets on the platform or those holding an average of $100 million in USD/USDC over a month will not be subject to these conversion fees. Additionally, members of the Coinbase Exchange Liquidity Program who qualify for Tier 1 or Tier 2 are exempt from these fees, provided they meet their monthly eligibility criteria.
A spokesperson from Coinbase stated that the company is dedicated to innovating its product offerings and considering user feedback. This step aims to provide an exceptional experience for its customers while supporting the company’s business objectives.
