Coinbase Expands to Over 100 Countries and Adds Support for USDC Stablecoin
Gaining access to the stablecoin also means possibilities for arbitrage on most major exchanges.
Coinbase is now accessible in more than 100 countries, while the USDC stablecoin is now available in 85 countries, the exchange announced on its blog. The news arrives at a time when digital asset prices are spiking again, and interest in crypto investments and trading is renewed.
“Stablecoins like USDC have a number of advantages over cash: they can be transferred near-instantly and globally, used in a wide variety of dApps, and stored securely and privately in a crypto wallet. Unlike other cryptocurrencies, each USDC is backed by $1 USD with monthly transparency audits showing 100% USD backing,” Coinbase pointed out.
The USDC asset is fully legalized in the territory of the USA, and has a full US dollar backing, unlike Tether (USDT), which admitted to 74% backing by fiat.
Coinbase also pointed out that the large international rollout of the USDC stablecoin may help as a hedge against inflation in some countries.
“For new customers in countries like Argentina and Uzbekistan, where consumer prices are expected to inflate by 10–20% in 2020, stablecoins like USDC could provide an opportunity to protect against inflation. We won’t fully realize this vision without increasing the number of traditional fiat on-ramps, which we are committed to expanding where possible,” the Coinbase team pointed out.
USDC, or USD Coin, is the third largest stablecoin, with a market share of 0.91%. As such, it is similar to TrueUSD (TUSD) and Paxos (PAX) for offering a complete fiat on-ramp, as well as the opportunity to liquidate funds into US dollars.
USDC trades in a total of 147 pairs on both large and small exchanges, and is widely represented on Binance. There is also a direct USDC/USDT pair, allowing for the conversion of 1 USDT to a fully dollar-backed asset. USDC saw both trading volumes and supply grow in May, to above the equivalent of $350 million.
The additional inflows of USDC reflect real-world purchases in fiat. USDC is an Ethereum-based token, held in more than 24,000 addresses. Binance is the biggest accumulator of USDC, holding more than 26% of the total supply. Poloniex is also one of the markets utilizing the liquidity of the USDC stablecoin.