Coinbase Exchange, the most popular cryptocurrency exchange, has launched its first US Dollar backed stable coin. The crypto exchange pioneer has partner with Circle, a crypto finance company, to offer it’s users the USDC coin. The coin is 100% backed by the US Dollar, which means that for every USDC coin there will be a USD Dollar held by Coinbase at a 1:1 ratio.
The cryptocurrency market is one of the most volatile market to trade in. These coins or tokens are well known for losing a huge percentage of their value literally overnight, which makes them a very unstable currency. However, stable coins like USDC are meant to give guaranteed security in value over time, and this could be exactly what the crypto space needs to gain the level of public trust that will propel cryptocurrencies mainstream.
Coinbase’s official website states that:
“Each USDC is 100% collateralized by a corresponding USD held in accounts subject to regular public reporting of reserves. 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.”
Coinbase Exchange currently offers the trading of Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin on their trading application, as well as access to many other cryptocurrencies on their cold storage platform called Coinbase Custody.
Here are some of the use cases of Coinbase Exchange USDC coin:
- Improved send and receive. The stability of the USDC will result in a more guaranteed value during each transaction.
- Use in dApps and exchanges. USDC will be used in different Coinbase Exchange applications like their dApps and trading exchange.
- A programmable dollar. USDC is a plus for developers as the coin, being an ERC20 token, can be send back and forth on the Ethereum blockchain.
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