Coinbase Launches Crypto Business Platform with 4.1% USDC Yield

Coinbase is making a strategic push into the business banking sector with the launch of Coinbase Business, an all-in-one financial platform targeting small and medium enterprises seeking to integrate cryptocurrency into their operations. According to Sid Coelho-Prabhu, Coinbase’s senior director of product management, “Startups and small businesses are weighed down by slow payments, high fees, and outdated banking systems. Coinbase Business brings the speed and global reach of crypto to modern financial operations.” The platform promises to streamline everything from payroll to vendor payments, allowing companies to accept crypto from customers, pay partners, or cash out directly to linked bank accounts.

The service includes several key features designed to appeal to business users, including instant crypto settlements, multi-user access, and integrations with popular accounting software QuickBooks and Xero. The platform will also link to crypto tax software like CoinTracker and Crypto Tax Calculator, addressing one of the major pain points for businesses dealing with digital assets. Onboarding for Coinbase Business will be fully self-service, with most applicants approved in as little as two days, significantly faster than traditional business banking account setups.

A central feature of Coinbase Business is the ability for companies to earn up to 4.1% APY on USDC stablecoins held in their accounts. This yield offering represents a significant competitive advantage in the business banking space, where traditional business checking accounts typically offer minimal or no interest. The yield opportunity is made possible through Coinbase’s unique relationship with Circle, the issuer of USDC, in which Coinbase holds a major stake.

Through an agreement with Circle, Coinbase receives 50% of all revenue from interest earned on the cash reserves backing the stablecoin. Because Coinbase is not USDC’s direct issuer, the company can offer incentive programs like yield on funds held in wallets to help boost adoption. For comparison, Coinbase also offers up to 4.7% APY on USDC balances held in self-custody using Coinbase Wallet to its non-business customers, though the business offering at 4.1% remains highly competitive within the business banking landscape.

The new platform positions Coinbase in direct competition with established fintech companies like Mercury and Brex, which offer yield-bearing business accounts, as well as crypto payment firms such as BitPay and OpenNode. By describing the service as a “crypto operating account,” Coinbase aims to differentiate itself by blending the functions of a bank, exchange, and payment processor into a single platform.

This strategic move comes as Circle, the issuer of USDC, went public earlier this year, strengthening the ecosystem around the stablecoin that forms a core component of Coinbase’s business offering. The integration of cryptocurrency into mainstream business operations represents a significant evolution in how companies might manage their financial operations in the future, combining the stability of traditional banking with the innovation of cryptocurrency.

Coinbase Business is currently in its alpha phase, with businesses invited to apply for early access. The company plans to roll out full availability later in 2025, according to the announcement. The phased approach allows Coinbase to refine the platform based on early user feedback while building anticipation in the market.

The launch timing positions Coinbase to capture growing business interest in cryptocurrency integration at a time when traditional banking alternatives are gaining traction. With features specifically designed to address common business pain points—slow payments, high fees, and complex financial operations—Coinbase Business represents the company’s most significant push yet into the business banking sector, potentially opening up new revenue streams beyond its core exchange business.