Coinbase Lists Goldman Sachs-Backed Stablecoin USD Coin (USDC)
Top U.S. cryptocurrency exchange and wallet provider Coinbase has added support for the USD Coin (USDC), a stablecoin issued by U.S crypto company Circle.
Top U.S. cryptocurrency exchange and wallet provider Coinbase has added support for the USD Coin (USDC), a stablecoin issued by U.S crypto company Circle backed by Goldman Sachs.
It is the first time Coinbase is listing a stablecoin, with the company saying that USDC is “fundamentally different” compared to other cryptocurrencies.
Coinbase has said that its users within supported jurisdictions now have the opportunity to buy, sell, send and receive USD Coin on its platform. The same services are also available for Coinbase customers on its iOS and Android apps.
As per the blog post, Coinbase’s U.S. customers outside of New York state will initially be able to buy and sell the stable-price coin, while customers from other regions around the world can send and receive the digital asset.
In addition to being added to Coinbase, the company plans to have the stablecoin on Coinbase Pro, saying that USDC would be available “in the coming weeks.”
The exchange also revealed that USD Coin is already supported on the company’s user-controlled Coinbase Wallet, a tool that allows users to store ERC20 tokens.
According to the blog post, the USDC and its underlying technology’s development will be a collaborative effort between Coinbase and Circle, under the CENTRE Consortium partnership.
Coinbase wrote that the stablecoin, like other blockchain-based digitally price-stable coins, could prove useful in the quest for an “open financial system.”
CENTRE Consortium, a joint venture between the two startups, is seen as a vehicle towards increased adoption of cryptocurrency assets that are pegged on actual fiat currencies like the USD, GBP, and EUR.
The launch of the USDC coin on Coinbase helps millions of users the chance to pay or accept small e-commerce payments without worrying about high volatility.
Other use cases of the currency include in dApps and exchanges as it follows the ERC20 token standard as well as by developers and fintech companies as a programmable dollar.
Stablecoins, as digital currencies have a value tied to a stable asset or fiat currency and are supposed to have a similar amount in real assets or fiat currency held by a regulated financial entity.
Like other US Dollar-backed coins, one USDC is said to be represented in a 1:1 ratio against actual US dollars. To avoid running into the sort of controversy that popular stablecoin Tether (USDT) has run into, Coinbase wrote that every USDC coin is collateralized.
“Each USDC is 100% collateralized by a corresponding USD held in accounts subject to regular public reporting of reserves.”
Speaking in Las Vegas at the Money 20/20 conference, Coinbase President and COO Asiff Hirji reiterated the point, saying that the coin’s issuance is “completely audited” and “completely transparent.”
Tether (USDT) concerns continue
Concerns about Tether’s transparency and fears that crypto exchange Bitfinex was insolvent led to tether (USDT) prices dropping considerably earlier this month. The coin’s price hit a low of about $0.92, the lowest it had fallen since April 2017.
The considerable decline in USDT prices saw some within the crypto community call on Tether LLC to create an environment of trust by being more transparent.
Despite the underwhelming tether performance, experts believe that stablecoins are a vital sector in the crypto industry.