Coinbase Joins Stablecoin Hype Launching Support for USD Coin (USDC)
Coinbase users are now able to trade Circle’s USD Coin (USDC).
US-based cryptocurrency exchange Coinbase has launched support for USD Coin (USDC), Circle’s fiat-collateralized stablecoin.
The company said in a blog post on Tuesday that its US customers outside the state of New York can now buy and sell USDC, while international users can send and receive the token. The announcement further details that trading for other “geographies will be available in the future”. Coinbase Wallet already supports the USDC token, while Coinbase Pro, the exchange’s professional trading platform, will begin supporting the token “in the coming weeks”.
Circle, a company backed by Goldman Sachs, launched its USDC coin last month. Each token is backed by a US dollar holding at a 1:1 ratio, meaning it is 100% collateralized, Coinbase noted. It added that as an ERC-20 token built on the Ethereum standard, USDC is compatible with most decentralized applications on Ethereum.
“The advantage of a blockchain-based digital dollar like USDC is easier to program with, to send quickly, to use in dApps, and to store locally than traditional bank account-based dollars. That’s why we think of it as an important step towards a more open financial system,” Coinbase’s statement read.
In adding support for the ERC-20 token, Coinbase joins Circle as a founding member of the CENTRE Consortium, which governs the development of issuance of USD Coin and other stablecoins that the consortium may develop in the future.
“Both Coinbase and Circle operate with a compliance-first approach and a track record of security. That’s why we believe CENTRE is uniquely positioned to offer USDC to people who want to take advantage of the benefits of stablecoins,” the blog post stated.
The stablecoin market has become very attractive, with several new projects entering the space in recent weeks. Amid this influx of new fiat-backed coin issuances, crypto exchanges have been quick to join the hype and add the most notable of them. Last Monday, OKEx listed four US dollar-pegged stablecoins: Paxos Standard (PAX), TrueUSD (TUSD), USD Coin and Gemini Dollar (GUSD). Singapore-based peer Huobi followed suit just a day later, announcing support for the same package of stablecoins. US cryptocurrency payment processor BitPay also launched stablecoin support last week, enabling merchants to receive settlements in Gemini Dollar and USDC.