Coinbase to Allow US Users to Deposit Paychecks Directly in Crypto

The massive crypto exchange will enable its U.S. customers to deposit all or part of their paychecks in crypto or dollars without a fee.

AccessTimeIconSep 28, 2021 at 7:17 p.m. UTC

James Rubin is CoinDesk's U.S. news editor based on the West Coast.

Coinbase will enable direct paycheck deposits, the U.S. cryptocurrency exchange giant announced in a blog post Monday.

The nine-year-old, publicly traded company said it will allow users in the U.S. to deposit “as much or as little” of their paycheck at no fee, whether in crypto or fiat currency. Coinbase said that direct deposit would address concerns that making frequent transfers was too time consuming, and will allow users to make investments, earn interest on digital assets or pay for goods and services with greater speed and efficiency.

Users can create and modify direct payments by following a few steps in the Coinbase app. Coinbase can set up an automatic paycheck distribution or provide instructions to enable manual deposits via a company’s payroll system. The company said the service will be launched in “the coming weeks.”

In a separate announcement, Coinbase said it would allow Coinbase Visa debit card holders to earn crypto rewards on spending in dollars as well as certain cryptocurrencies without fees, and that it had improved its mobile and web apps to enable users to research assets, conduct transactions and “engage with the broader cryptoeconomy.” The company said that beginning this week, cardholders will be able to earn 1% on DAI tokens or 4% on AMP or RLY tokens. They can already earn 1% on ether, dogecoin and bitcoin, and 4% on the GRT and XLM tokens.

“Coinbase is building a one-stop shop for crypto-based financial services,” VP of Product Max Branzburg said in a statement to CoinDesk, adding:

“Our goal is to enable everyone to get more out of their money with the power of crypto – from getting your paycheck in crypto, to generating yield on your assets, to spending your crypto and beyond – all from a single account.”

Coinbase noted its partnerships with M31 Capital, Nansen and SuperRare Labs enable workers in the “creator economy” to receive crypto payments. The company said it would make further announcements in the coming months about how it would facilitate these types of payments by companies.


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

James Rubin is CoinDesk's U.S. news editor based on the West Coast.

CoinDesk - Unknown

James Rubin is CoinDesk's U.S. news editor based on the West Coast.