The largest US-based cryptocurrency exchange Coinbase announced support for the dollar-pegged stablecoin issued by Circle – USD//Coin (USDC).
First Stablecoin Supported by Coinbase
In an official announcement, the San Francisco-based cryptocurrency exchange Coinbase revealed that its users will be able to buy, sell, send, and receive USDC at its iOS and Android apps, and on Coinbase.com.
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. – reads the release.
This is the very first time the cryptocurrency exchange has supported a stablecoin. The post stated that each USDC is 1:1 backed by the US dollar, meaning that it is 100 percent collateralized.
It’s worth noting that Coinbase Wallet is already supporting the stablecoin while Coinbase Pro will follow “in the coming weeks.”
The move has been made possible by the new collaboration between Circle and Coinbase who came together to form the CENTRE Consortium. In an official blog post, Circle revealed that their joint venture is “aimed at establishing a standard for fiat on the internet and providing a governance framework and network for the global, mainstream adoption of fiat stablecoins.”
Stablecoins on the Rise
As for now, US customers outside of the state of New York can buy and sell USDC while customers throughout the world will be able to send and receive. However, the announcement also says that more geographies are going to be available in the future.
Earlier this week, Live Bitcoin News reported that another cryptocurrency exchange forayed into the field of stablecoins, issuing one on its own. Huobi introduced the so-called HUSD – an interchangeable stablecoin which is unlike any other existing solution.
Users will be able to purchase any of the supported stablecoins and they will appear on their Huobi balance as HUSD. Consequently, they can withdraw any amount in any of the supported stablecoins as well. These include Paxos Standard (PAX), True USD (TUSD), USD Coin (USDC), and Gemini Dollar (GUSD). Notably, Tether has been left out.
What do you think of Coinbase’s support for USDC? Don’t hesitate to let us know in the comments below!
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