The largest US digital currency exchange, Coinbase, has added a dollar-pegged cryptocurrency to the list of digital coins supported on its platform.
In an October 23 announcement, Coinbase said that “customers in supported jurisdictions can buy, sell, send and receive the USD Coin stablecoin (USDC)” at coinbase.com, as well as via the company’s iOS and Android apps. The firm further explained that US citizens outside the state of New York can “buy and sell”, while “customers around the world can send and receive”, adding that more geographies would be added in the future.
The move marks the first time a stablecoin has been added to Coinbase. The company explained that the technology behind USDC was developed “collaboratively between Coinbase and Circle, in our capacity as partners and co-founders of the new CENTRE Consortium”. According to the announcement, each USD Coin is backed by $1.
In addition to being the first stablecoin on Coinbase, the coin is also only the second ERC-20 token supported on the platform. Recently, Coinbase added 0x (ZRX) an Ethereum-based token with a total market cap of just under $500 million.
Describing USDC as a “US dollar on the Ethereum blockchain”, Coinbase noted that this type of digital currencies has some advantages over the fiat dollar, such as being programmable, as well as being easier to use in decentralised apps (dApps) and exchanges, to send quickly and to store locally.
“That’s why we think of it as an important step towards a more open financial system,” Coinbase said.
In the coming weeks, the token will also be added to Coinbase’s crypto exchange offering, Coinbase pro. The stablecoin is already on Coinbase Wallet, a user-controlled wallet where people can store ERC20 token.