Coinbase Adds Support for Circle Stablecoin

coinbase coin

Coinbase has announced that it will now support the Circle stablecoin USDC. The cryptocurrency exchange announced on a blog post that the coin had begun trading yesterday, the 23rd October. The move is significant as it is the first time Coinbase has shown support for a stablecoin and it also comes only a week after tether had seen a panic spike lower as traders continue to question the legitimacy of the coin’s 1:1 peg. The addition of USDC could be seen as a vote of no confidence in tether. This follows news last week that Binance was expanding its stablecoin offerings to four.

The underlying technology of the USDC coin was actually co-developed by Coinbase and Circle under the CENTRE banner.

The company’s blog stated, “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 will also be added to the Coinbase Pro platform in coming weeks. The stablecoin already supported on the Coinbase Wallet, which supports ERC20 tokens.

The move to a stablecoin is a further sign that Coinbase are becoming more aggressive in their listing policy. Competitor exchanges have wider offerings and competition is heating up in th ecryptocurrency space.

Did We Just See the First Crack in Tether?

tether bitfinex

Cryptocurrency markets are higher this morning after the Tether stablecoin slipped to 95 cents on the dollar on the Kraken exchange. The move lower in Tether across the board led to a strong volume spike in Bitcoin, which moved from $6,300 to blast through previous resistance at $7,250.

Monday’s sharp move lower in the stablecoin is significant because criticisms have been levelled in the past at the claims that is each Tether is backed 1:1 by the U.S. dollar. The move is also significant because new stablecoins have recently come onto the market, including the “USDCoin” created by Circle. Fears over the Bitfinex exchange being insolvent have also been swirling and Tether sees large volume on the Bitfinex exchange.

This could be the first crack in Tether that sees traders move to other exchanges and stablecoins.