Does this apply to me?
USDC Earn is only available to Luno customers with verified accounts in South Africa.
The USDC Earn wallet is a feature that allows you to earn passive rewards on your USD Coin (USDC). By simply moving your USDC into the Earn wallet, you can earn up to 3.5% interest per year, with no lock-ins, no transfer fees, and no hidden conditions.
It’s a secure and flexible way to grow your USDC while keeping access to your funds whenever you need them.
How to use your USDC Earn wallet
Tip
Before you can start earning, you’ll need to buy some USDC. Have a look at this article for detailed instructions on how to buy cryptocurrency.
Let's get you started
How to transfer into your USDC Earn wallet
- Sign in to your Luno app
- On your Home screen, select Earn
- Select USD Coin (USDC)
- Read the information and select NEXT
- Enter the amount of USDC you’d like to transfer into your Earn wallet and select REVIEW TRANSFER
- If you’re happy with the transfer amount, select CONFIRM
That’s it! You’ve just transferred your crypto into your Earn wallet and will start earning interest.
How to transfer out of your USDC Earn wallet
- Sign in to your Luno app
- At the bottom of your screen, select Portfolio
- Select USD Coin (USDC)
- Enter the amount of USDC you’d like to transfer out of your Earn wallet and select REVIEW TRANSFER
- f you’re happy with the transfer amount, select CONFIRM
That’s it! You’ve just transferred your crypto out of your Earn wallet.
Keep in mind
While we aim to process transfers instantly, it may take up to 2 business days for funds to be allocated to your USDC Earn or USDC wallet.
Frequently asked questions
How does it work?
To start earning, simply move any amount of USDC from your main USDC wallet to your USDC Earn wallet. Once your funds are in the Earn wallet, Luno will invest funds in trusted and regulated, real-world assets like US treasuries, not lent out to risky borrowers.
From day one, your funds begin to earn interest, which is calculated and added to your balance daily, helping your holdings grow over time through compounding.
How is the interest calculated?
You could earn up to 3.5% per annum, and interest is compounded daily. This means every day, your rewards are added to your balance, and the next day, you earn interest on your original amount plus the new rewards.
Will the interest rate always be 3.5%?
While we aim to offer a target rate of up to 3.5% p.a., the actual rate you receive depends on factors out of our control. Market conditions, the performance of the yield-generating investments, demand for yield in the broader crypto and DeFi markets, USD interest rates or treasury yields, all have an impact on the interest rate.
How long do transfers in or out take?
Transfers in and out of your USDC Earn wallet are usually processed instantly. However, in some cases, it may take up to 2 business days for the transfer to be completed. This depends on liquidity and the settlement times of external providers.
Is there a minimum amount required to earn interest?
No, there is no minimum deposit. You can start earning with any amount of USDC.
Are there any fees or penalties?
There are no fees to transfer USDC in or out of the Earn wallet. Your funds aren’t locked in, and you can withdraw at any time without penalties.
Can I trade funds in my Earn wallet?
No, you will not be able to transact (send, sell, send) while the funds are kept in your Earn wallet. In order to regain access to your funds and to transact, you’ll need to transfer your funds out of your USDC Earn wallet.
What risks should I be aware of?
Price fluctuation: As a stablecoin holder, you will still be subject to any price changes.
Access to funds: While the average lead time to transfer funds out of the Earn wallet is usually within minutes, it could take up to 2 business days to gain access to the funds depending on market conditions.
How is interest generated?
As a registered Financial Services Provider, Luno invests the funds in your Earn wallet into trusted, regulated sources such as US Treasuries and other cash-equivalent assets, allowing you to earn interest.