What’s Going On?
Coinbase now supports Circle’s stablecoin USD Coin (USDC), the first fiat-currency pegged cryptocurrency for trade on the platform.
Why Does It Matter?
Coinbase and Circle announced a joint-venture known as the “CENTRE Consortium” on Tuesday, reported CNBC. The companies say the new project aims to speed up adoption of cryptocurrencies backed by fiat government currencies like the US dollar.
Circle launched, USD Coin, its own US dollar version of what’s known as a “stablecoin”, in May, reported CNBC. As of Tuesday it will trade on Coinbase’s popular cryptocurrency exchange.
What’s So Different?
“This is the first time Coinbase has supported a stablecoin, which is fundamentally different from other cryptocurrencies,” wrote the exchange platform’s team in an official announcement. “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.”
Bloomberg reported: “There’s been a slew of new issuance of stable coins recently as industry enthusiasts try to find more uses for crypto. Tether is the largest of the bunch, but is beset by doubters amid concern as the company has refused to be audited and won’t disclose its banks. Gemini Trust Co. and Paxos Trust Co. both launched stable coins in September.”