Coinbase Adds Its First Stablecoin. San Francisco based cryptocurrency exchange, Coinbase has announced that the firm will be partnering with Circle. This is to bring Circle’s stablecoin USDC into its exchange. From Oct 23, customers in supported jurisdictions can buy, sell, send and receive USD Coin on the Coinbase website, Coinbase iOS and Android apps.
The USDC stablecoin
Coinbase Adds Its First Stablecoin. Customers of coinbase who are located in the United States are able to buy and sell USD coin. Also, customers around the world can able to send and receive the stablecoin. In upcoming years the company also believes that customers in more geographical locations will be able to use USDC on the Coinbase platform.
The San Francisco firm says that it’s the first time in launching stablecoins into its exchange. The USD token was the collaborative effort between Coinbase and the Boston-based circle financial.
Coinbase explains in its blog post. “The underlying technology behind the USDC was developed collaboratively between Coinbase and Circle, in our capacity as partners and co-founders of the new Centre Consortium.”
It also states “Each USDC is 100% collateralized by a corresponding USD held in accounts subject to regular public reporting of reserves”
Coinbase Adds Its First Stablecoin. USD Coin has already gained support from more than 40 blockchain and crypto companies. This includes sectors like wallets, custodians, exchanges, decentralized applications, and numerous leading firms. Stablecoins provide a much less volatile alternative to crypto assets such as Bitcoin and Ether. However, one USD Coin represents one U.S. dollar on the Ethereum blockchain. Uses of USDC includes improved value transfer, utility in decentralized applications and exchanges and programmability
CENTRE consortium is the joint venture which is formed recently between Coinbase and Circle to establish listing digital representations standards for fiat currencies. The venture is focused on speeding up the adoption of crypto assets backed by fiat currencies like the U.S. dollar.
“Coinbase and Circle share a common vision of an open global financial system built on crypto rails and blockchain infrastructure. Thus realizing this vision requires industry leaders to collaborate to build interoperable protocols and standards”
-Circle co-founders Jeremy Allaire and Sean Neville
Increase in adopting stablecoins:
A stablecoin is a digital currency tied to another stable currency like the U.S. dollar. Similarly, it is designed to minimize price volatility. The value of a stablecoin is based on the value of the backing fiat currency, which is held by a third party regulated financial entity. Now both coinbase and circle on board it’s clear that at the moment the USDC token is only stablecoin available on the Coinbase.
Coinbase says that it will be compiled along with Circle Financial by maintaining a “track record of security.” The firm also explains that the two companies’ reputations and compliance-first approach give them a “unique position” in the growing stable coin economy.