SAN FRANCISCO — Cryptocurrency exchange Coinbase has restored its direct-deposit feature after an absence of about 18 months, allowing users to deposit portions of their paychecks directly into crypto accounts and automatically invest those funds into stablecoins or other digital assets.
Coinbase said in a blog post that customers can allocate any portion of their paycheck into their Coinbase account and direct those funds into USD Coin, the stablecoin issued by Circle Internet Group, or into other cryptocurrencies offered on the platform without typical trading fees.
The rollout comes as lawmakers continue debating the proposed Clarity Act, legislation that, unless amended, would prohibit companies such as Coinbase from offering rewards on idle stablecoin balances. That could push customers seeking returns toward other crypto-related activities such as trading, lending or staking. Credit unions and banks have lobbied aggressively for the prohibition.
The renewed direct-deposit offering also arrives during a volatile stretch for the crypto market. Banking Dive noted that Bitcoin, for example, has fallen roughly 40% in value since October, citing data from Yahoo Finance.
Coinbase first introduced direct deposit in 2021 before discontinuing the service in late 2024.
‘Explicit Intent’
“Our decision to wind down our original direct deposit feature was made with the explicit intent to bring back a better experience for users in the future,” a Coinbase spokesperson told American Banker. “We’re happy to now offer a new and improved version of the product with higher deposit limits, better discoverability and a more seamless onboarding experience.”
Coinbase said it increased its direct-deposit limits from $25,000 per day to $200,000 per week to better align with common payroll cycles, including weekly and biweekly paychecks.
Banking Dive reported that Coinbase also emphasized that cryptocurrency holdings themselves are not insured directly by the Federal Deposit Insurance Corp. However, customer cash balances held by Coinbase are maintained in pooled custodial accounts at insured banks or credit unions, with insurance coverage up to $250,000.
OK Given for National Trust Charter
The report also noted that Coinbase recently received conditional approval for a national trust charter from the Office of the Comptroller of the Currency. Banking Dive said trust banks generally are not permitted to accept deposits directly without a partner bank and typically do not receive FDIC deposit insurance themselves.
Despite those limitations, Coinbase described the new direct-deposit feature in its blog post as “a direct throughline to the digital economy.”
“Here, your balance isn’t a static number,” the company wrote. “It’s an active growth engine.”
