Starting August 13, Coinbase will implement a 0.1% fee for conversions of the stablecoin USDC to US dollars for net conversions exceeding $5 million over a 30-day period. This decision follows disappointing second-quarter earnings, where the company's revenue missed analyst expectations. Despite this, Coinbase's revenue from stablecoins rose by 12% year-on-year to $332 million. The company clarified that it is experimenting with fees to evaluate their impact on USDC off-ramping, especially since competitors impose higher fees. Currently, no fees are charged for net conversions of USDC to USD up to $40 million, while reduced rates apply for higher brackets. The move may be aimed at managing operational costs and countering arbitrage opportunities involving Tether (USDT). Coinbase has seen a significant drop in stock prices after reporting lower-than-expected earnings, raising concerns about its financial performance. Analysts noted this fee might help Coinbase balance creating and redeeming USDC.

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