Coinbase announced on Tuesday that beginning today customers can buy, sell, send, and receive USDC - a dollar-pegged stablecoin launched by Poloniex exchange owners Circle.
Coinbase customers worldwide will be able to send and receive USDC, which is backed by US Dollars in company-controlled bank accounts, while US Customers, excluding customers in New York, can buy and sell the token on Coinbase. USDC is not currently listed on Coinbase Pro, the platforms exchange, but will be added in the coming weeks.
Commenting on the decision, Coinbase said:
“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.”
Coinbase notes that stablecoins like USDC are ideal for e-commerce and business purposes, as payments using them can be made at any time of day without the volatility risk associated with cryptocurrencies such as Bitcoin.
Stablecoins are, currently, primarily used as a USD proxy in cryptocurrency trading. With over $2 billion in daily volume, most of which being in the controversial stablecoin Tether.
Coinbase joins Circle as a founding member of the CENTRE Consortium, which governs the development and issuance of USDC and other stablecoins that may be developed.
Jeremy Allaire, co-founder and CEO of Circle, emphasized the importance of creating an asset with no single owner or issuer.
“Coinbase joining us to co-found CENTRE and launch USDC reinforces the value of a shared, standard, interoperable stablecoin. Like internet standards, USDC is now not owned by one single company, but distributed among network participants according to clear rules, regulations, and collectively-owned software,” he said. “When we began work on CENTRE and USDC last year, we envisioned collaborating with a consortium of industry leaders to set new standards for global value exchange and financial contracts. We’ve been thrilled to collaborate with Coinbase on CENTRE, and we look forward to welcoming more partners who share this vision.”