San Francisco-based global cryptocurrency exchange Coinbase has announced that the company will now support Circles USDC stablecoin on its exchange and brokerage service platforms. Coinbase believes that blockchain-based digital dollars like USDC bring many benefits to the cryptocurrency market ecosystem.
Also Read: Bitpay Announces Stablecoin Support For Merchant Settlement
Coinbase and the USDC stablecoin
Coin base announcement The introduction of stablecoin support on its trading platform is part of a growing trend in the crypto economy. On October 23rd, the California Stock Exchange revealed that customers in supported jurisdictions can buy, sell, send and receive USDC. In the future, customers in more geographic locations will be able to use USDC on the Coinbase platform, according to the company. The San Francisco firm notes that this is the first time it has endorsed a stablecoin and says the digital asset is “fundamentally different from other cryptocurrencies.” Additionally, Coinbase says the USDC token was a collaborative effort between them and Boston-based Circle Financial.
“Each USDC is 100% secured by a corresponding USD, which is held in accounts that are subject to regular public reporting of reserves,” explains Coinbase in its blog post. “The underlying technology behind the USDC was developed in collaboration between Coinbase and Circle in our capacity as partner and co-founder of the new Center Consortium.”
Coinbase states that Team Circle helped develop the USDC token.
Coinbase describes the benefits of USDC throughout the announcement, emphasizing that the blockchain-based digital dollar is much more efficient to send and receive. Also, since USDC is an ERC20 standard token, it can be integrated into applications such as Cryptokitties and other Ethereum projects. Finally, Coinbase sees USDC as a “programmable dollar” in a sense that makes it easier for developers to add certain features.
“Given the private keys for USDC, a program can simply send and receive them back and forth over the public Ethereum blockchain, for example,” explains Coinbase.
2018 has seen a spate of stablecoin announcements
Currently, the USDC token is only available on Coinbase’s broker page, but the coin will be added to the exchange soon, the company adds. Coinbase says the company, along with Circle Financial, will be fully compliant by maintaining a “safety record”. The company also states that the two companies’ reputation and compliance-first approach give them a “unique position” in the growing stablecoin economy.
The Coinbase news follows Bitpay’s announcement on October 15 when the payment processor announced that it would support the Gemini dollar (GUSD) and the Center Coin (USDC) for merchant processing. In the past six months, stablecoins have been added to many exchanges and cryptocurrency infrastructure systems. Most of the recent stablecoin announcements have resulted in exchanges adding other types of stable tokens in addition to the popular Tether (USDT) coin issued by Tether Limited and Omni Layer.
So far, most exchanges and payment processors that have significant cryptocurrency volume have added stablecoins like USDC, GUSD, PAX, and TUSD. Coinbase concluded its announcement by stating that the company has also added USDC to the Coinbase user-driven ERC20-centric wallet. The addition follows the recent 0x (ZRX) listing that Coinbase added to the company’s range of tradable coins.
What do you think of Coinbase adding a stablecoin to the mix? Let us know what you think on this matter in the comments below.
Images via Shutterstock, Coinbase, Circle Financial and Pixabay.
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Center Coin, Circle Financial, Coinbase, secured, ERC-20, Ethereum, Gemini Dollar, GUSD, N-Featured, San Francisco, Stablecoins, Tether, Tusd, USDC, USDT