Coinbase launches "Direct Deposit" feature, allowing users to have their monthly salaries deposited directly into their exchange accounts.

Coinbase has announced the suspension of its lending product, "Coinbase Lend," after clashing with the SEC. However, the exchange has come up with a new initiative allowing users to deposit their monthly salaries directly into their Coinbase accounts.

Direct Deposit to Cryptocurrency Exchange

On 9/28, Coinbase announced that users can now set up direct deposit of their monthly paychecks into their Coinbase accounts, where they can choose to deposit in USD or directly convert it to any cryptocurrency available on the platform.

According to the announcement, there are no fees for direct deposit of paychecks, but there may be transaction fees involved in converting directly to cryptocurrency. Prakash Hariramani, Director of Product at Coinbase, stated that this feature was introduced due to user complaints about the time-consuming and inconvenient process of transferring funds from banks to Coinbase.

Hariramani described this move as the "future of paychecks," claiming to have partnered with companies such as Fortress Investment, M31 Capital, Nansen, and SuperRare Labs to make it easier for businesses to pay their employees in cryptocurrency.

Coinbase is expected to release a solution product that will enable businesses to more easily adopt cryptocurrency for paying employee salaries. Hariramani emphasized to keep an eye on Coinbase's announcements in the coming months.

In addition, PayPal introduced a variety of financial features, including direct deposits and a high-yield savings account called "PayPal Savings," in its "Super App Wallet" launched on 9/22 in collaboration with Synchrony Bank in the United States.

Furthermore, brokerage platform Robinhood, which is actively entering the cryptocurrency market, has implemented direct deposits through its cash management feature Robinhood Cash Management.

The trend of Coinbase COIN this month continues to decline, with the stock price currently only 10.3% away from its historical low of $208.