US crypto exchange giant Coinbase has increased in popularity over the years, as digital currencies have become a staple of our economy and a new form of investment for many individuals around the world. For years, Coinbase only offered the three major cryptocurrencies: bitcoin, ethereum, and litecoin. However, in the recent year, the platform has opened up to other virtual currencies such as bitcoin cash. The American firm is continuing its expansion and has recently announced its own stablecoin called USDC.
In order to understand the importance of this announcement, we first have to understand what a stablecoin is. A stablecoin is a cryptocurrency that is backed by a fiat asset, usually the dollar, and that is by definition stable and does not fluctuate in value. The purpose of a stablecoin is to be able to have a digital currency that is usable on platforms such as Coinbase or other exchanges and that will mirror the value (1:1) of a traditional asset such as the dollar.
Coinbase has announced the creation of its dollar-backed stablecoin in a blog post at the end of October. It is tradeable and purchasable via the website and the iPhone and Android applications. The USDC coin is only available for customers outside of the state of New York and is the second ERC20 token on the platform, alongside the 0x token that was recently added. Moreover, it is important to note that the USDC coin is the fruit of a collaboration between fintech company Circle and Coinbase. The announcement claimed: “The advantage of a blockchain-based digital dollar like USDC is easier to program with, to send quickly, to use in dApps, and to store locally than traditional bank account-based dollars. That’s why we think of it as an important step towards a more open financial system.”
Coinbase is not the first exchange to add a stablecoin to its list of decentralized assets. However, it is one of the most popular crypto exchanges in the world and that means this move could influence others to follow. Will we see other crypto platforms and traditional financial asset exchanges add stablecoins in the near future?
TLDR: One of the most popular exchange and trading platform Coinbase has announced the launch of its own stablecoin named USDC. This coin was created in partnership with fintech company Circle.