Coinbase, in a partnership with Circle, has announced the launch of a ‘digital dollar’ stablecoin called USDC and is now trading on the cryptocurrency exchange.
24 October 2018 | AtoZMarkets – The US-based cryptocurrency exchange, Coinbase has announced the launch of their USD-pegged cryptocurrency (USDC), making it the first stablecoin available for trade on the platform.
AtoZMarkets learned this at the Money 20/20 conference held on October 23 in Las Vegas.
Coinbase Customers Can Now Trade USDC
Coinbase customer will now be able to purchase, send and receive this new asset, which is fully available for trading on their website, Coinbase.com and via IOS and Android-based mobile apps.
The company noted, however, that geographical limitations to USDC apply. At this stage, US-based customers outside the state of New York will be able to buy and sell, while users around the world can only send and receive the token.
The exchange, Nevertheless, plans to extend its jurisdictions and functionality in the near future. Coinbase stated the following in the press release:
“This is the first time Coinbase has supported a stablecoin, which is fundamentally different from other cryptocurrencies. Unlike bitcoin or ether, a USDC is meant to represent a single US dollar (USD) that does not move up or down relative to its reference currency. One USDC is a 1:1 representation of a US dollar on the Ethereum blockchain.”
The brokerage giant stated that the token will be added to Coinbase Pro platform in the coming weeks as it is already been supported on the exchange Wallet.
The Benefits Of Stablecoins
The USDC coin is purportedly 100 percent backed by the US dollars and is stored in the company-controlled bank accounts in accordance with regulatory requirements.
The San Francisco-based company also added that the underlying technology behind the stable coin was collaboratively built by Coinbase and Circle in partnership with the new CENTRE Consortium.
“Today’s launch is made possible by the collaboration between Coinbase and Circle, as co-founders of the new CENTRE Consortium. 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.”
In addition, the exchange highlighted that stablecoins like USDC are suitable for business purposes and small e-commerce applications. USDC is also based on ERC20 standard and it is compatible with several dApps that supports such tokens.
Therefore, payments can be made in these tokens at any time of day as they are designed to minimize the inherent risks of price volatility related to the use of Bitcoin and other cryptocurrencies.
Tether (USDT) Controversy
AtoZMarkets reported earlier this month, the controversy that trailed another stablecoin, Tether (USDT). The virtual currency found itself in a state of quagmire after volatility caused it to lose 6 percent to the US dollar.
At the time, Tether traded around $0.975 mark, at one point declining to as low as $0.91. The problems was as a result of rumors that cryptocurrency exchange Bitfinex was facing insolvency.
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