Coinbase will charge a fee for converting USDC into US Dollars
Coinbase has made changes to the list of fees charged. Now the platform will additionally deduct up to 0.2% from some transfers to convert USDC into US dollars. The change will primarily affect large customers. The innovation will take effect on February 5.
The Coinbase exchange will charge a commission of 0.1% to 0.2% for converting USDC into US dollars from transfers over $75 million per month. The change will take effect on February 5, 2024.
The gradation of amounts and fees is as follows:
up to $75 million — 0%;
from $75 million to $150 million — 0.1%;
from $150 million to $500 million — 0.15%;
more than $500 million — 0.2%.
The company noted that the fee will be charged only from the amount that exceeds the limit of $ 75 million for a rolling 30-day period.
This so-called "net conversion" is determined by subtracting the total volume of transfers of US dollars to USDC from the amount of transactions for the exchange of USDC into US dollars per month.
The exchange gave an example of calculating the commission. Client A exchanged $100 million USD to the USDC. Then, in the same month, he converted $300 million USDC into US dollars. The volume of "net conversion" will amount to $200 million.
In this case, the commission calculation will be as follows:
$75 million — 0%;
$75 million — 0.1%;
$50 million — 0.15%.
The fee will not be charged to some customers. These are those whose average monthly USDC balance exceeds $100 million and USDC holders worth more than $500 million. The list of exceptions also includes participants in the "liquidity program" of the first and second-tier exchanges.
Source: Incrypted
