Coinbase Launches Stablecoin Backed by Circle on its Platform
Coinbase is introducing USDC, a stable coin pegged 1:1 to the US Dollar on their platform. The exchange is joining CENTRE which is the consortium backing the stable coin.
The stable coin was introduced by Circle along with other companies in late September this year. Coinbase was a part of the development effort of USDC which is built on the Ethereum Blockchain.
This is the first stable coin that Coinbase is introducing onto its platform, the exchange recently listed its first ERC20 token 0x (ZRX) and is planning to list more tokens eventually.
Stablecoins are a useful tool for users to store their value in dollars and avoid the volatility of Cryptocurrencies. dApps and other exchanges can also be accessed using the stable coins.
In their blog, Coinbase mentions:
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.
Coinbase is launching support for the USDC stablecoin. Starting today, Coinbase customers in supported jurisdictions can buy, sell, send, and receive USDC at https://t.co/bCG11KveHS and in our mobile apps. Learn more here: https://t.co/ZPKaIUAAsW pic.twitter.com/z8fFd8mDYp
— Coinbase (@coinbase) October 23, 2018
Many stable coins have been launched in 2018 like Paxos, USDC, Gemini Dollar, etc. Although Tether still accounts for a majority of trade volume, people are tending to lean towards other stable coins to mitigate the risk of the Bitfinex backed Stable coin.
There has been a lot of speculation about Bitfinex being insolvent and about Tether’s lack of transparency which led to exchanges like Binance, Huobi, OKex listing other stable coins. Coinbase has now stepped in to join the bandwagon by listing USDC.
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