You can soon direct deposit your paycheck into crypto through Coinbase
Direct deposit is coming to crypto, Coinbase said Monday.
In the next few weeks, the company will roll out a feature that allows customers to deposit any portion of their paycheck directly into Coinbase. People can use the funds for regular crypto investments, earning crypto rewards, or spending on the Coinbase card—a Visa debit card that allows people to buy everyday items with crypto.
Coinbase users can select which cryptocurrency they would like their paycheck to be converted to, or keep the sum denominated in U.S. dollars. The crypto options include Bitcoin, Ethereum, the U.S.-dollar pegged USD Coin, or any of the more than 100 coins on the platform.Subscribe to The Ledger for expert weekly analysis on fintech’s big stories, delivered free to your inbox.
In a blog post Monday, Coinbase Senior Director of Product Prakash Hariramani said the feature was aimed at reducing the need for customers to constantly transfer funds from their bank accounts into Coinbase.
With the feature, users can now set up direct deposit by searching for their payroll company or employer through the app. There will be no transaction fees on direct deposit funds, according to the blog post.
The Bitcoin payment app Strike last year announced a feature to convert direct deposit funds into Bitcoin, but it is currently limited to a waitlist of users.
Coming off of its stock market listing in April, Coinbase also added a feature called Alt 401(k) to allow workers at participating companies to transfer up to 5% of their account balances into a Coinbase-traded cryptocurrency window.
The company said Monday it is also working on making it easier for companies to pay their employees in crypto. Coinbase said it has partnered with M31 Capital, Nansen, and SuperRare Labs on this effort and will be releasing details in the coming months.
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