The mighty crypto exchange Coinbase announced on Tuesday that its new stablecoin, USD Coin (USDC) is now available on their exchange.
Until recently, one of the drawbacks to the popular exchange was that it was only supporting the top coins plus fiat
But the addition of USD Coin (USDC) marks their first stablecoin and their second ERC-20 token. It was only a few weeks ago that they added Ox (ZRX), which has been one of the most successful currencies so far in Q4. And Coinbase’s previous announcement indicate that they’re considering 4 other tokens as well.
The USD Coin (USDC), first announced in September, is backed 1:1 by the dollar, and it’s 100% collateralized
The understanding is that this token will compete to overtake Tether (USDT). This is due to the fact that controversy shrouds the token and it is sinking well below the dollar. Meanwhile, Binance Coin (BNB) has the same goal. And of course, several other companies issued stablecoins as well, including IBM.
The blog post announcing the USD Coin (USDC) explains:
“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”
Circle is a well-funded P2P tech company that recently purchased the exchange Poloniex as well
CENTRE has been their pet project of several years. Its ultimate goal is to be a universal wallet, linking all cryptocurrencies. More specifically, it will connect different platforms. Therefore, the USD Coin (USDC) will be the anchor for all exchanges. Besides collaborating specifically on the new token, Circle and Coinbase formed a partnership as the CENTRE Consortium.
Like other stablecoins one main purpose of the USD Coin (USDC) is to establish a stable value. But in addition, CENTRE wants the token to streamline network tasks. Circle co-founders Jeremy Allaire and Sean Neville explain:
“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.”
In short, the token has the potential to enhance the entire Ethereum-based ecosystem, from exchange, to development, to purchases. Coinbase wallet supports the USD Coin (USDC), and Coinbase Pro will follow suit in the following weeks. This is only the beginning of this new partnership between Coinbase and Circle. Besides this token, the CENTRE Consortium may develop other stablecoins in the future.
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