The Coinbase cryptocurrency has announced that it has added another cryptocurrency to its exchange and it happens to be a stablecoin pegged to the US dollar.
The announcement is a landmark moment because it is the first time that Coinbase has added a stablecoin to the platform. The USD Coin (USDC) cryptocurrency is the latest addition to Coinbase?s already large portfolio of supported cryptocurrencies. However, it is the first stablecoin to make it to the platform. The exchange revealed in a blog post that U.S clients other than those in New York can purchase, or sell USD Coin.
The new stablecoin is accessible on multiple Coinbase platforms
Customers can access USDC through Coinbase?s app for Android and iOS or through its website. Other than being the first Coinbase-supported stablecoin, USDC also happens to be the second ERC20 crypto token that Coinbase users can access.
“The underlying technology behind the USDC was developed collaboratively between Coinbase and Circle, in our capacity as partners and co-founders of the new CENTRE Consortium,” the blog post noted.
USD Coin is pegged to the US dollar at a 1:1 ratio which means it is a safe cryptocurrency to trade with since it is not affected by volatility seen in the cryptocurrency market. The Coinbase blog post also added that stablecoins such as USDC are ideal especially in DApps because they can be sent and received quickly. Storing the stablecoin locally makes more sense than storing money in a bank. Coinbase claims this is an ideal argument for an open financial system.
A collaboration with Circle
Coinbase revealed in a different blog post that it collaborated with Circle, USDC’s creator to launch the cryptocurrency on the exchange platform. Coinbase Wallet already supports the stable coin and Coinbase Pro plans to support the cryptocurrency in the future.
Stablecoins have increasingly become popular especially in 2018 and numerous stablecoin projects have entered the cryptocurrency market. Their popularity has mainly been due to the fact that they are immune to the highly volatile nature of digital currency market as has been seen in the past. Some other exchanges such as OKex and Huobi have also offered support for stablecoins.