Coinbase, a leading cryptocurrency exchange, has announced that it will impose fees on institutional clients conducting USDC to USD net conversions exceeding $75 million per rolling 30-day period. The move is aimed at clients conducting large transactions, and the fee structure is tiered based on the transaction amount.
The fees will be applied based on the transaction volume, with a tiered structure:
- For conversions between $75 million and $150 million, a fee of 0.10% will be charged.
- Transactions ranging from $150 million to $500 million will incur a fee of 0.15%.
- USDC to USD conversions exceeding $500 million will face a fee of 0.20%.
The fees will be directly deducted from the USDC to USD conversion amount. However, exceptions will be made for Coinbase Prime clients with over $500 million in assets on the platform or holding an average balance of $100 million in USD or USDC over a calendar month. Members of the Coinbase Exchange Liquidity Program qualifying for Tier 1 or Tier 2 will also be exempt when meeting their monthly eligibility criteria.
This move by Coinbase aims to optimize its fee structure and generate revenue from large transactions while ensuring a competitive and premium experience for clients. The exchange continues to navigate challenges, including regulatory scrutiny and market dynamics.