Coinbase lists Circle stablecoin USDC in its platform, a decision that surprised some due to them not having listed Tether, the most famous and popular stablecoin. In a blog post in their Medium account, they reveal that this is the first stablecoin that they have decided to support. Stablecoins are special cryptocurrencies, whose traits are widely different from other cryptocurrencies.
Coinbase Lists Circle Stablecoin USDC
Coinbase, one of the most significant exchanges, has at least chosen a stablecoin to back down. Stablecoins are the hot topic these days, and not having one listed made them look bad. But it is just not a dumb trend. there are real applications for this kind of assets.
In their blog post, they explain why USDC is a good addition to their portfolio. USDC is a regulated stablecoin. They maintain an audit system that guarantees a 1:1 collateral on the Ethereum blockchain.
With this move, Coinbase expects a big number of customers to take advantage of the new coin. For this end, they mention every possible use that stablecoins have, to school their users.
Coinbase Branching Out?
While some are surprised, for others it is a natural move. The crucial problem that cryptocurrencies face is volatility. That is why cryptocurrency wallets make for a poor payment system. That is why Coinbase listed USDC, to use it as a dollar replacement on digital payments.
The fact that Coinbase lists Circle stablecoin will revitalize services like Coinbase Commerce and more sites will flock to this easy way of paying. And being directly tied to the wallet provider, it has the advantage of that connection.
So, with this inclusion, Coinbase might be eyeing the payments market. It could become a cryptocurrency PayPal of sorts, but with the benefits that cryptocurrency offers. Non-refundable payments and pseudo-anonymity.
Also, Coinbase shows that it has no trust in Tether as a cryptocurrency. Tether became the de-facto standard for cryptocurrency stablecoins earlier this year. The fact that it was not chosen by Coinbase to be in their platform says a lot.
Maybe Coinbase execs are not convinced about the 1:1 dollar collateral system of Tether. This fact, and them not having an audit since last year should be highly concerning issues.
Also, the catastrophic price drop that Tether experienced last week is an alarming fact. Even when the reports state that it was a prepared operation, it seems alarming that someone could manipulate the market in such a way.
In any case, stablecoins are here to stay, and Coinbase has a bet on Circle’s dollar. Let’s see how it turns out to be.