Coinbase has teamed up with Ethena to route idle USDC into yield-generating strategies that the company says comply with proposed restrictions in the CLARITY Act. The partnership, announced this week, allows activity-based rewards rather than passive interest on stablecoins.
The move comes as the CLARITY Act advances through Congress with Section 404 banning savings-account-style interest on stablecoins while permitting rewards tied to customer activity. Banks lobbied for the limits to protect deposits, with JPMorgan Chase CEO Jamie Dimon criticizing the current draft. Under the arrangement, Ethena generates returns through an active delta-neutral basis trade involving shorting crypto perpetual futures. Coinbase will support security and operations for more than $5 billion in Ethena assets and serve as the protocol's primary custodian. Ethena founder Guy Young said the partnership supports dollar savings products and expects further tailwinds from the evolving legislation. The first growth initiative is scheduled to launch next week for Coinbase's more than 100 million users. Coinbase reported holding an average of about $19 billion in USDC in the first quarter of 2026, which accounts for more than 25 percent of total USDC in circulation.
