Coinbase has allocated funds for crypto payments to 160 New York residents

Key points:

• Coinbase has donated funds that will provide 160 residents of the South Bronx and East Harlem with $12 000 in USDC stablecoin.
• Participants receive $800 monthly and a one-time payment of $8000. The program will run until February 2026.
• The payment structure is based on GiveDirectly’s research showing that large one-time transfers allow financial problems to be solved more quickly.

Some New Yorkers have started receiving cryptocurrency thanks to a donation from Coinbase. The exchange transferred the funds to the non-profit organization GiveDirectly, which launched a pilot money transfer program. A total of 160 residents of the South Bronx and East Harlem will receive $12 000 in USDC stablecoin. The project format combines monthly payments and a large one-time sum, allowing different models of social assistance distribution to be tested.

Participants receive $800 per month starting in September 2025, and in November, they received a one-time payment of $8000. Part of the funds is issued immediately, rather than being distributed evenly over a long period. This approach is designed to give people the opportunity to invest in large expenses more quickly. The program will end in February 2026.

Why was a one-time payment chosen

Emma Kelsey, program manager in New York, said that the payment structure is based on research by GiveDirectly. Their findings show that large transfers enable people to pay for housing deposits, invest in education, or participate in training programs more quickly. Kelsey noted that many participants would prefer this format, and the experience of previous pilot programs, such as In Her Hands in Georgia, confirmed its effectiveness.

GiveDirectly took into account the opinions of local residents and the results of research conducted in the US and other countries. The team decided that a combination of regular payments and a large one-time sum would provide a more flexible and useful support structure.

Why are payments made in cryptocurrency?

Payments in USDC are directly related to the fact that the funding came from Coinbase in cryptocurrency. The organization distributes donated digital assets and monitors whether the crypto format changes the behavior of participants. Kelsey explained that the process is not much different from traditional payments, but the team is studying how convenient cryptocurrencies are for low-income residents.

The choice of areas is linked to high poverty levels and the favorable attitude of local politicians towards the crypto industry. In the South Bronx and East Harlem, many residents are open to alternative financial instruments, including cryptocurrencies, making the pilot particularly relevant for testing.