Coinbase is soon going to enable businesses based in the United States to deposit the paychecks of their employees into accounts directly at the crypto exchange.
In a blog post on Monday, the senior director of product at Coinbase Prakash Hariramani revealed that the exchange platform would soon be allowing direct deposits for employees who decide to use their salaries to invest in cryptocurrency with no transaction charges. Consumers can organize direct deposits via a supported payroll firm on the Coinbase application, or via the corporation’s human resources division.
Hariramani stated users will be given the opportunity to deposit as little or as much of their salaries as they want in the new feature being launched in the next number of weeks. Coinbase referred to time-taking and inconvenient common transfers as part of the main reasons for the new service. It stated that the ability to deposit directly would give users a more efficient and convenient way to gain cryptocurrency rewards.
Coinbase has already joined forces with US-based companies such as M31 Capital, Fortress Investment Group, and SuperRare Labs to launch direct deposits for workers all across the creator economy and financial services. The exchange platform also made references to more in the next coming months, along with the announcement that holders of its Visa debit card would get the opportunity to gain up to 4 percent back in the form of cryptocurrency rewards.
The update comes a week after the platform stated it would not be carrying forward its Lend cryptocurrency lending scheme. Coinbase had first said to have planned to provide partial yields on USD Coin deposits, only to later abandon the plan after the SEC threatened the firm with a lawsuit.
According to Coinbase chief Brian Armstong, the Wells notice, which is a letter the regulator sends to companies it plans to take legal action against, took the company by surprise, taking into consideration its efforts to resolve any regulatory issues with the SEC before its announcement.
In other news, PayPal had also announced the launch of a new application set to be an all-in-one app for the virtual payment requirements of the firm’s clients. The new application allows users to gain access to all of the firm’s virtual financial products with ease. The newly launched application is meant for both cryptocurrencies as well as non-crypto use cases with its own wallet tab for users to manage crypto payments and high yield savings.
