In a bid to make decentralized finance (DeFi) more accessible to its customers, major US crypto exchange Coinbase says it is enabling users in 70 countries to buy a DeFi yield product using their DAI crypto holdings.
The exchange is making DeFi “more customer friendly and accessible,” as “eligible users will now be able to access the attractive yields of DeFi from the comfort of their Coinbase account with just a few taps and without the network fees,” the exchange said in a statement, adding:
“Starting today, you’ll be able to earn DeFi yield on Dai, a stablecoin that is designed to be pegged to the US Dollar.”
Coinbase says that the latest launch marks just the beginning of its global expansion into DeFi, and the exchange will continue “to explore ways” to allow customers to use “a wider variety of assets and a greater number of DeFi protocols.”
The list of the 70 countries in which Coinbase’s customers will be allowed to buy the DeFi yield product includes the UK, Germany and Spain, but not the US, according to the exchange.
Coinbase says that when its customers opt in to earn a DeFi yield, their DAI will be deposited into Compound Finance (COMP), one of the major DeFi protocols.
The offered annual percentage yield (APY) “varies based on the rates from Compound and will automatically update to reflect changes in the market. Compound’s rates are variable — as an example, during the month of October, the APY for supplying DAI fluctuated between 2.83% and 5.39%,” the statement said.
The latest development comes after, earlier this year, American regulators scrapped Coinbase’s plans to offer Lend, another interest-generating product, to its customers. Last September, the US Securities Exchange Commission (SEC) threatened to sue the exchange if Coinbase enabled its users to invest in Lend which was to offer a 4% return, Bloomberg reports.
Alesia Haas, Chief Financial Officer at Coinbase, said in a congressional testimony last Wednesday that the company still does “not have clarity on why our product wasn’t allowed to proceed.”