Coinbase hasn’t been a fan of stablecoins in the past, but it’s rather unclear as to why. In a surprising twist, it has been hard at work behind the scenes creating its own USD stablecoin with the help of Circle. In an announcement, the pair launched their USD stablecoin and will both be adding it to their trading platforms. Recently, Tether – the most popular USD stablecoin – looked like it was near collapse following a recent run of back luck. This announcement from the pair could be directly related to the Tether catastrophe that is unfolding quietly on other exchanges.
Coinbase’s First Stablecoin
Up until now, Coinbase didn’t offer any stablecoins and this left crypto traders with fewer options in times of volatility. However, in a bid to become the world’s leading crypto exchange, Coinbase has been ramping up the number of services it offers to traders. Traders can now diversify and hedge against downward swings in crypto markets with its new USD stablecoin – the USDC. USDC will be pegged at a value of 1:1 with the US dollar and will go live on Coinbase Pro in the coming weeks.
Circle Helping Out
Coinbase enlisted the help of fellow American crypto exchange, Circle. Earlier in the year, Jeremy Allaire – Circle CEO – said that all fiat currencies would have a digital version of themselves eventually. Circle has dedicated a significant amount of resources to help Coinbase make the stablecoin possible, and as a result will also be listing it on its crypto exchange.
Coinbase Ramping Up Operations
Coinbase appears to have shifted into a new gear in recent weeks, as it continues to roll out new products and features. Recently, Coinbase changed its listing process in order to get more cryptos onto the exchange. On top of this, Coinbase has also entered the race to launch the first Bitcoin ETF. However, the US Securities and Exchange Commission (SEC) is still yet to make a decision on the exchange’s ETF application.
The crypto world has recently received a wave of new stablecoins. The Winklevoss twins launched their first regulated stablecoin – the Gemini Dollar – and Stasis launched its Euro stablecoin to help European crypto traders mitigate fiat fluctuations denting their profits. Crypto exchanges around the globe have begun listing stablecoins as demand for these cryptos is beginning to increase. Last week OKEx listed four stablecoins, in what looked like an attempt to protect itself from any fallout from the Tether debacle.
Stablecoins are giving crypto investors a myriad of new options when it comes to protecting their investments from negative market movements. Coinbase’s new addition of a stablecoin will help to secure its future in the crypto trading industry, and will help to set itself apart as a leader in the sector.