Coinbase’s Crypto UBI Pilot Launches, 160 New Yorkers Earn $12,000 in USDC

Currently, 160 people in New York City are each receiving $12,000 in cryptocurrency through a five-month cash transfer program funded with funds from Coinbase. Funds did not come directly from exchanges this year.

After Coinbase shut down its own philanthropic program two years ago, it donated the funds to a nonprofit that is currently running a pilot. Payments are made in USDC, a stablecoin that tracks the US dollar.

The goal is simple on paper. Use crypto rails to move real money to real people and track what happens.

This program begins in September and ends in February. At the start of the pilot, each of the 160 participants began receiving $800 per month in USDC.

In addition to these monthly payments, all participants also received a one-time $8,000 lump sum payment in November. At the end of five months, each participant will have raised exactly $12,000.

All transfers are delivered digitally through cryptocurrency wallets using USDC as the payment rail.

New York pilot transfers cash as monthly USDC and large lump sum

The cash transfer effort follows the model of guaranteed basic income programs that already exist across the U.S. and in other countries, which send money directly to people not subject to spending rules.

Payments go to selected groups rather than the entire population. Most guaranteed income programs target households with incomes near the poverty line. This makes it different from universal basic income, where everyone in a city or country receives a payment, regardless of their income level.

A New York cryptocurrency pilot has changed the usual payment pattern by adding a large upfront payment. Emma Kelsey, program leader for the New York Cash Transfer Project, told Business Insider that the choice to include the lump sum came from past research.

“Our international work and a number of studies in the United States show that it may be possible for people to invest with lump sums and do things that may be more costly, such as making deposits or signing up for education and training programs,” she said. “But we also heard from participants that that was their preference.”

Kelsey also pointed to another program in Georgia called In Her Hands run by GiveDirectly. The project tested monthly transfers as well as higher upfront payments.

“We did a lot of research in the community and heard feedback that this one-time payment approach could be more valuable to them compared to a standard recurring payment model,” she said. The New York pilot copied that structure by combining stable monthly USDC with one large payment.

GiveDirectly selects South Bronx and East Harlem for crypto payments

There are several reasons GiveDirectly chose to conduct the pilot in New York City. One factor, Kelsey said, was support from local politicians for crypto-based tools. Another factor was the level of need in the target area.

The 160 participants were drawn from two neighborhoods with very low household income levels: the South Bronx and East Harlem. “We chose New York, specifically the South Bronx and East Harlem, because they have incredibly low-income areas,” she said. “There has also been support from politicians in areas around cryptocurrencies, which has made it easier to use cryptocurrencies. It seems like a very natural fit when the need is high, but the ecosystem around cryptocurrencies has received more support than some other areas.”

The decision to use cryptocurrencies instead of regular bank transfers also distinguishes this pilot from most other guaranteed income tests.

Kelsey said GiveDirectly wants to see how people react when their money arrives through a digital wallet rather than a bank account. “We’re very interested in seeing if people use it differently,” she said. “Do they perceive it differently? Is it more or less beneficial to them?”

Kelsey also said South Bronx and East Harlem residents may be more open to using cryptocurrencies than traditional banking tools, noting that some residents already face limitations on standard financial services.

“We thought this would be a good opportunity to see if this type of payment option would be viewed favorably,” she said. The pilot will continue to send monthly $800 transfers until February after the November lump sum has already been deposited into your wallet.