US-based Coinbase listed the recently launched USDC, a 1:1 USD-pegged cryptocurrency stablecoins. The coin is in direct competition with another stablecoin Tether (USDT). Coinbase released to its clients that they will now be able to buy, sell, send, and receive the USDC stablecoin, on its platform. The major cryptocurrency will provide services for the USDC to 32 countries including the US, with the notable exception of New York state.
The “bitcoin unicorn” Circle, who had closed a $110 million Series E fundraiser, had recently launched the USDC stablecoin, pegging it to physical fiat USD, that are held in a company controlled bank account.
Coinbase has also announced that for the time being, the new USDC stablecoin will only be listed on the Coinbase.com platform. As of now, Coinbase Pro users are excluded, but there are plans to implement the new coin in the coming weeks.
Coinbase commented on the listing of the stablecoin:
“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.
The introduction of a fiat-based blockchain currency could contribute to the development of “a more open financial system” and could further the adoption of decentralized applications(dApps)”
This is another attempt from a cryptocurrency exchange to utilize fiat currency to minimize the volatility of the market. This is not always the case, as Tether recently experienced a huge sell off, hinting that the stablecoin was in fact not backed 1:1 with the USD.