Coinbase has added support for the cryptocurrency XRP, currently crypto market’s third-largest digital asset by market capitalization-behind Bitcoin (BTC) and Ethereum (ETH).
The U.S.-based crypto exchange announced on Monday, February 25 that XRP would be listed on Coinbase Pro- the exchange’s professional trading platform.
According to the platform, XRP would be available for “transfer-only” transactions starting today. It means that Coinbase customers are only allowed to deposit tokens at the moment.
Other trading services like taking orders and executing trades are set to activate after the first 12 hours, although Coinbase has indicated that the timeline for enabling additional services could vary.
Per the blog post, access to XRP for Coinbase Pro customers is open to the platform’s users in the United States, (except for those in New York state), the United Kingdom, Canada, some EU nations, Singapore and Australia.
The exchange will add XRP support for several other jurisdictions in the future, the company wrote.
The move to launch XRP on Coinbase Pro has already seen many within the crypto community ask when the Ripple (XRP) token will be added for retail users on Coinbase.com and on Android and iOS apps.
Although Coinbase did not give any firm timeline within which it would proceed to add XRP support on its retail platforms, the typical order of events has mostly seen the exchange add digital tokens for non-professional users within weeks of adding the given coins or tokens on Pro.
The XRP ledger, according to the Coinbase blog post, “is powered by a network of peer-to-peer servers,” with the all user accounts on the network able to send or receive the XRP token to or from each other.
Additionally, users can utilize XRP to send other “underlying fiat currencies.”
The latter is an advantage that XRP offers its users because it, in this case, functions “as a bridge currency” when transactions are handled using different mainstream currencies like the US dollar, Japanese yen, the Euro, and Francs among others used on the XRP.
XRP’s controversial history relates to its ties to the San Francisco-based blockchain company Ripple, which owns a ton of XRP tokens worth billions.
It has also meant that questions arise as to whether U.S. regulators would eventually classify it as unregistered security.
At the moment, Ripple Labs and some of its executives are facing a federal class-action lawsuit that has alleged XRP is a security that startup sold to users. Ripple, on the other hand, has maintained that XRP isn’t and shouldn’t be classified as a security.
Coinbase’s latest move, however, appears to suggest that the exchange is ready to list the digital asset regardless of how the regulatory agencies classify it.
It is possible Coinbase may be banking on its 2018 acquisition of a broker-dealer license as a potential regulatory cover, if and when the U.S. Securities and Exchange Commission (SEC) strikes.
Meanwhile, the crypto market may still be in a slump, but the Coinbase news saw the XRP token surge by about 10 percent before correcting lower this morning. The coin is currently trading 5.8 percent in the green on the day.
With Ripple (XRP) finally getting listed on Coinbase, many will wonder what the next coin on Coinbase will be.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.