Coinbase to enable paycheck deposits in cryptocurrency in the coming weeks

Coinbase has recently revealed a new feature, allowing users to be able to receive their paychecks in the US dollar or convert it to cryptocurrencies instantly. The service is expected to launch in the coming weeks in the United States and would be available to employees of any American company that pays through direct deposit.

Coinbase offers easier access to crypto

Through direct deposit, Coinbase’s US customers would be able to have their paychecks sent to their accounts in the coming weeks. 

Any employee of a US-based company that pays wages through direct deposit would be able to receive their paychecks on the crypto platform. They would also be able to choose whether to receive their paychecks through US dollars or transfer them to Bitcoin or other digital assets supported on Coinbase.

The Nasdaq-listed firm stated that the direct deposit feature aims to solve the issue of latency as bank transfers are “time-consuming and inconvenient,” removing the additional steps needed to fund an account.

Although the crypto exchange did not specify a launch date, the firm said that the feature will be launched in the coming weeks in tandem with cryptocurrency rewards on the Coinbase card.

The “Get Paid in Crypto” service will also offer the option for users to receive payments in stablecoins USDC or DAI to be able to earn interest. Users would also be able to create and modify direct payments after following simple steps on the firm’s app. 

Coinbase also plans to reduce friction on purchasing or using cryptocurrencies, allowing users to exchange tokens easily. The firm also believes that this process could represent the future of payroll. 

While the process involves a zero-fee basis, Coinbase will benefit from the spread on transactions.

In the future, the crypto exchange also plans to enable companies to pay with digital assets, as it has partnered with Fortress Investment Group, M31 Capital. And Nansen to develop this process.

Recently, Coinbase’s new developments have received scrutiny from the US Securities & Exchange Commission (SEC). The firm’s crypto lending service was said to be categorized as issuing unregistered securities, according to the agency.