Today, we’re introducing Dai Rewards, with 2% APY* for customers in the US, UK, Netherlands, Spain, France, and Australia. With yields on savings accounts and government bonds at record lows, earning rewards on stablecoins like Dai and USDC stands out as an alternative way to passively generate income using crypto held on Coinbase.

Stablecoins that aim to maintain a stable value of $1, like USDC and Dai, can be useful because they are not subject to the same volatility as many other cryptocurrencies. This is one reason stablecoins have grown to a market cap of more than $12 billion, as people use them to hold funds without volatility, transfer funds quickly and cheaply, and gain exposure to the US dollar.

Eligible customers will begin earning rewards automatically once they have $1 of Dai in their Coinbase accounts. Initial rewards will be distributed within five business days, then every day following, which means customers can use or withdraw their rewards as soon as they receive them. Customers always maintain control of their funds — their Dai stays in their accounts and can be withdrawn instantly at any time.

To get started with Dai Rewards, customers can simply buy Dai on Coinbase or send Dai to their Coinbase accounts from an external wallet.

*Learn more about eligibility and APY on our support center and our Dai Rewards terms.

was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.