Massive Exchange Coinbase Joins Circle for USDC Launch
Leading crypto exchange platform Coinbase has officially shown its support for one of many other crypto stablecoins pegged to the US dollar looking to overtake USDT for the lead. Coinbase, which is located in San Francisco, declared that users can now trade in USD Coins, a cryptocurrency that was primarily launched by equally massive exchange platform Circle.
Users globally can now use the token on the network, which is currently backed by actual USD within bank accounts overseen by the company, by either selling or receiving it. As for users in the U.S., they can trade in USDC on the Coinbase website, except for those in NYC.
The USDC is still missing from Coinbase Pro, the company’s order-book for crypto exchanges, but it was announced that it should be added within the next few weeks.
Coinbase further stated that this decision to stand behind this token was made because such blockchain cryptos that are based on fiat could benefit in the advancement of a much more open network and could also improve the implementations of dApps. A blockchain crypto digital dollar is very significant in more ways than one, as it is simpler to program and is able to be sent in much less time, can be used with dApps, and for local storage when compared with the conventional dollars within ordinary bank accounts.
Benefiting from a Fiat-Based Crypto
The company further emphasized that these types of stablecoins are perfect in terms of business objectives and e-commerce projects. Payments associated with such tokens can take place at any time and not worry about distinctive risks attached to the volatility in prices as has been common with BTC and many others when used as working capital.
Currently, however, stablecoins are mainly considered to be USD proxies in crypto trading. Jointly, assets that are based on fiat currencies see a trading volume that has reached more than $2 billion and most of these transactions are going towards USDT at the present time.
Support for USDC has increased tremendously as Coinbase joins forces with Circle as a founder behind CENTRE Consortium, an entity that controls the development process of the USDC issuance and also other stablecoins to be developed at a later date.
Coinbase had, in fact, already joined Circle in building the technology for USDC, whose structure is designed as an ERC-20 token as per the ETH network, but how much exactly the company has been involved was never disclosed publicly before.
The Chief Executive Officer and co-founder of Circle, Jeremy Allaire, pressed how important it is when creating such an asset for it not to have just one owner. He sees this collaboration as a step that strengthens the total value of the stablecoin. USDC is currently distributed within several participants of the network under clear and precise rules and restrictions. When the project started last year on CENTRE and the USD Coin, the company looked forward to a partnership with one of the industry’s leading companies to help create new guidelines for the worldwide financial and also exchange contracts.