tl;dr
Coinbase and GiveDirectly launch a pilot program offering $12,000 in USDC to 160 low-income New Yorkers, exploring crypto's potential to combat poverty and promote financial inclusion.
**Coinbase and GiveDirectly Launch Crypto Stipend Program for New York’s Low-Income Residents**
In a pioneering effort to leverage blockchain technology for social good, Coinbase, one of the largest cryptocurrency exchanges, has partnered with the non-profit GiveDirectly to launch a pilot program distributing crypto stipends to low-income New Yorkers. The initiative, named *Future First*, aims to explore how no-strings-attached financial support in the form of cryptocurrency can alleviate poverty and expand economic opportunities.
**A $12,000 Crypto Boost for 160 Residents**
The program will provide 160 randomly selected New Yorkers aged 18 to 30 with a total of $12,000 in USDC (a stablecoin pegged to the U.S. dollar) over five months. Participants will receive an initial payment of $8,000, followed by five installments of $800 each. GiveDirectly, a nonprofit known for its direct cash transfer model, will manage the program, while Coinbase will fund the initiative and handle the technical infrastructure for the crypto transfers.
“We wanted the funds to go to a U.S.-based non-profit whose mission aligned with our goal of increasing economic freedom,” a Coinbase spokesperson said. “We aim to bring the transformative power of blockchain technology to those who need it most.”
**Breaking Barriers: Crypto as a Tool for Financial Inclusion**
This initiative marks the first time a U.S. program has distributed cryptocurrency as a direct stipend to low-income individuals. While recipients can transfer the funds to traditional bank accounts or use a Coinbase debit card for purchases, the program also seeks to educate participants on managing digital currencies. By engaging with USDC, participants will gain hands-on experience with blockchain technology, a skill increasingly relevant in a digital-first financial landscape.
Coinbase emphasized its role is limited to facilitating the transfers, with no involvement in selecting participants. The program underscores the company’s broader vision to promote a more inclusive digital financial system, where crypto can serve as a bridge for underserved communities.
**From GiveCrypto to Future First: A Shift in Approach**
This pilot builds on Coinbase’s prior efforts in crypto-based philanthropy. In 2018, the company launched *GiveCrypto*, an initiative that aimed to distribute cryptocurrency globally to individuals in need. However, the project was discontinued in 2023 after struggling to create lasting impact. Remaining funds from GiveCrypto—$2.6 million—were later donated to GiveDirectly, which now uses them to seed the New York City program.
The shift from GiveCrypto to *Future First* reflects a more targeted approach, focusing on U.S. residents and leveraging partnerships with local organizations to ensure practical, immediate support.
**A Test Case for Crypto’s Role in Social Impact**
The *Future First* program joins a growing body of research on unconditional cash transfers as a tool for poverty alleviation. By using cryptocurrency, the initiative also explores how digital assets can empower individuals in a financially inclusive way. For participants, the program offers not just financial relief but also a gateway to understanding and adopting emerging financial technologies.
As the pilot unfolds, its success could pave the way for similar programs nationwide, highlighting the potential of blockchain to address systemic economic challenges. For now, Coinbase and GiveDirectly are betting that crypto can be more than an investment—it can be a lifeline.