Coinbase Adds Direct Deposit to Crypto Accounts
The Coinbase cryptocurrency exchange digs deeper into traditional financial services, allowing users to deposit their paycheck directly into their online account.
Coinbase said monday that US users will be able to use the direct deposit service for any percentage of their salary. They can keep their money in dollars or immediately transfer it to cryptocurrencies like bitcoin at no cost.
“With direct deposit, customers can more easily access our crypto-first financial services and be ready for any trade or purchase,” Max Branzburg, vice president of products at Coinbase, said in the blog. “We are committed to providing our 68 million users with the most trusted, comprehensive suite of crypto-premier financial services.”
The launch, which will go live in the coming weeks, comes after customers complained that frequent transfers from their bank accounts to Coinbase “take time and are inconvenient,” the company said. Coinbase added that it aimed to give “instant access to the crypto-economy”.
Coinbase said it will use an FDIC-insured banking partner for direct deposit, but did not specify which one. The company is working with Meta Bank for its Coinbase rewards card.
Other popular online finance apps already support direct deposit. Online banking companies like Chime and SoFi provide the service as part of a broad product portfolio, while PayPal and the Robinhood stock exchange app also allow users deposit their paychecks.
Coinbase is rolling out new offerings while trying to navigate a complicated regulatory environment. Last week, the company canceled plans for a high-interest loan product after the SEC threatened to sue it.
Coinbase CEO Brian Armstrong called it “really sketchy behavior on the part of the SEC recently.” Armstrong also claimed the agency refused to meet with the company and gave “no explanation as to why.”
SEC Chairman Gary Gensler has sharpened his criticism of the cryptocurrency industry. In his testimony before the Senate Banking Committee, Gensler called for more crypto oversight. He also called for additional resources from Congress to ensure investor protection and argued that most digital assets traded must be registered with the agency.
Coinbase went public in April via a direct listing. The stock has fallen 40% since its inception, trading at $ 229.40 on Monday. Its movements often reflect the volatility of bitcoin, which has fallen by 28% over the same period.
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