Coinbase to Launch Direct Deposit Feature for Salary Earners

Coinbase is one of the world’s leading cryptocurrency exchanges. The company has become a leader in the industry thanks to its insight and ability to innovate.

The exchange announced another product directed at increasing crypto adoption and ease of access for its customers.

Easier Deposits on Coinbase

In a blog post published on Monday, Prakash Hariramani, Coinbase’s chief of product, announced that the company will be offering direct deposits for customers who would like to purchase crypto with their salaries. The new product will also be open to businesses. For instance, it will allow business owners to deposit employees’ salaries into the exchange. Above all, they won’t have to pay any transaction fees for them.

Hariramani explained that the new product will allow Coinbase’s users to set up direct deposit. This should be possible through their companies’ human resource departments. Alternatively, they can deposit through any of the payroll companies that the Coinbase app supports. The feature will help with Dollar-cost averaging and improve customers’ crypto saving abilities.

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Besides convenience, the new service should also make crypto purchases faster for Coinbase’s customers. Direct deposits will cut through much of the red tape in buying. Also, they will offer a quick purchase option for anyone.

The SEC Guts Lend

The direct deposit option is the latest product coming from Coinbase. The company has been expanding its influence in the crypto space for years. However, it especially ramped up its efforts following a listing on the NASDAQ exchange earlier this year.

However, things haven’t always gone Coinbase’s way. The company announced last week that it would kill its Lend crypto lending program, which it was close to launching.

Coinbase first announced Lend in June. It also offered customers up to 4% in annual yields for deposits of its USDC stablecoin. Much excitement followed the announcement. Also, Coinbase confirmed that hundreds of thousands of customers across the United States had signed up for Lend.

Sadly, it wasn’t to be. Earlier in September, the Securities and Exchange Commission (SEC)threatened to sue the exchange if it launched Lend. CEO Brian Armstrong took to Twitter to criticize the agency, explaining in a lengthy tirade that the agency had been displaying “sketchy behavior.”

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As Armstrong explained, Coinbase had approached the SEC when it had the idea for Lend. However, the agency told the company that Lend will be deemed a security under its purview.

They refuse to tell us why they think it’s a security, and instead subpoena a bunch of records from us (we comply), demand testimony from our employees (we comply), and then tell us they will be suing us if we proceed to launch, with zero explanation as to why,” Armstrong added.