Coinbase recently listed Circle’s USD Coin as the exchange’s first stablecoin and the second ERC-20 token available for trading after the 0x token which was added earlier this month.
In their official blog post, Coinbase explains customers can buy, sell, send, and receive USDC on Coinbase.com, but also on their iOS and Android apps. US customers located outside New York can buy and sell, while customers from the rest of the world can send and receive. Coinbase also added they plan to make these features available in more locations over time.
Coinbase and Circle founded a collaborative “CENTRE Consortium” and partnered up to develop the technology powering the USDC.
Circle launched the USDC stablecoin at the end of September. Compared to other cryptocurrencies, USDC is simple a digital version of the US dollar (USD) and its value stays true to the reference currency with a 1:1 rate on the Ethereum blockchain.
The asset is stable and fully collateralized by a USD stored in accounts compliant to regular public reporting of reserves. In their blog post, Coinbase explains the USD’s digital counterpart is much more beneficial when it comes to encouraging a more transparent financial system:
“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.”
USDC can be quickly transferred even in large amounts, plus it follows the ERC20 standard. This means you can use it with any app that accepts ERC20 tokens.
Presently, the Coinbase Wallet supports the USDC token. It’s a user-controlled wallet customers can use to store ERC20 tokens and it should also become available on Coinbase Pro in the following weeks.