Coinbase adds direct deposit into crypto accounts
Cryptocurrency exchange Coinbase is going deeper into traditional financial services, allowing users to deposit their paycheck directly into their online account.
Coinbase said on Monday that U.S. users will be able to use the direct deposit service for any percentage of their paycheck. With no fees, they can keep their money in dollars and transfer it to cryptocurrencies such as bitcoin immediately.
Max Branzburg from Coinbase’s vice-president of product, stated in a blog post that direct deposits allow customers to access crypto-first services more quickly and are ready for trades or purchases. Our 68 million customers deserve the highest quality, most reliable suite of crypto first financial services.
Coinbase’s launch will be live within the next few weeks. The company launched the site after complaining that customers find frequent bank transfers too time-consuming and uncomplicated. Coinbase said that its goal is to offer “instant access the cryptoeconomy.”
Coinbase stated that it would use an FDIC insured bank partner to deposit direct, but didn’t specify the one. Meta Bank is the bank partner of Coinbase for their rewards card.
Direct deposit is also possible on other popular online financial apps. Online banking companies like Chime and SoFi provide the service as part of a broad portfolio of products, while PayPal and and stock-trading app Robinhood also let users deposit their paychecks.
Coinbase continues to develop new products while trying to navigate the complex regulatory landscape. Last week, the company canceled plans for a high-interest lending product after the SEC threatened to sue over it.
Brian Armstrong, CEO of Coinbase called the recent SEC behavior “really suspicious”. Armstrong claimed that the SEC refused to meet the company and offered “zero explanation” as to why.
SEC Chairman Gary Gensler has sharpened his criticism of the cryptocurrency industry. Gensler, in testimony before the Senate Banking Committee called for greater crypto supervision. Gensler also requested additional funding from Congress in order to protect investors and said that all digital assets must be registered with the agency.
Coinbase went public in April through a direct listing. Since its launch, the stock dropped 40% and traded at $229.40 Monday. The volatility in bitcoin is often mirrored by its moves, which have fallen 28% during the same period.