- Now venturing into payroll, Coinbase has unveiled a feature allowing users to directly deposit their paychecks into their online accounts.
- The zero-fee service will be launched in a few weeks alongside crypto rewards for the Coinbase card.
The U.S. largest crypto exchange by daily traded volume, Coinbase Global, has now unveiled a new payroll feature to its American users. The feature will allow users to receive their paychecks in their Coinbase accounts. This applies to clients who are employees of a US-based company that pays through direct deposits. Even more, users will have the choice of receiving their money in either of two ways. Pay can either be deposited in US dollars or Bitcoin or other digital assets supported on Coinbase.
The new service is expected to launch in the coming weeks, but Coinbase is yet to specify a date for it. However, the Nasdaq-listed exchange said the launch will coincide with crypto rewards on the Coinbase card.
Importantly, the “Get Paid in Crypto” service will solve bank latency pain points which can be “time-consuming and inconvenient.” Users will be relieved of the additional steps necessary to fund their Coinbase accounts through bank transfers. Coinbase will automate everything from when the client receives payment, to depositing on the exchange and purchasing tokens. The near-instant token acquisition will reduce the friction during the purchase or use of cryptocurrencies.
Coinbase unveils payroll feature
Employees will have the option of receiving payments in USDC or DAI stablecoins, which will earn them interest. The firm’s soon-to-be-released app will have simplified steps which the user can follow to further modify direct payments.
Furthermore, the simplified registration process is done only once. The client provides information about their current payroll company or employer. Coinbase then proceeds to cater for necessary paper for an employer to receive their money directly into their online account.
As an incentive for use, the Coinbase feature is on a zero-fee basis. The exchange, will, however, benefit from the spread of transactions. Coinbase views this development as the next leg in payroll and is looking to be one of its early providers.
In the future, the company plans to enable other firms to make payments with digital assets. Coinbase has forged partnerships with Fortress Investment Group, M31 Capital, and Nansen blockchain analytics firm for the same.
Despite several setbacks, the company has positioned itself as a major crypto player in the North American market. Listing as a publicly traded company marked a critical historical moment for both crypto and conventional markets. Investors seeking indirect exposure to Bitcoin now look into the company’s stocks.
However, the company’s developments have had mixed results. Earlier on, the firm planned to introduce a crypto lending service but had to abandon the project before launch. US financial regulator indicated that the offering would be categorized as an unregistered security, and therefore illegal.
This event, however, did not stop the company from doing business with the US government. A few days ago, the firm revealed that it had secured its largest-ever public contract to provide the US Homeland Security with blockchain analytics software for undisclosed motives.
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