Coinbase just launched their first supported stablecoin in history. USD Coin (USDC) is a digital dollar now available for buying, selling, sending, and receiving by customers in supported jurisdictions.
Currently, US residents who live outside New York state can buy and sell USDC. Additionally, non-US customers from around the world can send and receive it. Coinbase has stated that more capabilities for additional geographies will be available in the future.
USDC: The New USD Stablecoin
The new stablecoin represents a single US dollar, meaning that 1 US Dollar is collateral. USDC exists on the Ethereum blockchain.
Coinbase and Circle collaborated to introduce this new stablecoin. The two tech giants are partners and co-founders of the CENTRE Consortium.
The Benefits of a Digital Dollar
There are many benefits to using a digital dollar directly linked to the US dollar. Specifically, it makes it possible to quickly transfer funds, use dApps, and store currency locally.
USD Coin (USDC) can be quickly and easily sent between two Ethereum wallets at any time. Similarly, users can carry out large transfers without delay. In addition, all this takes place directly within the Coinbase app.
The stablecoin meets the ERC20 standard. Therefore, it works with any application that accepts tokens based upon the standard. Furthermore, you can also use it to make purchases within a cryptocurrency ecosystem. Also, developers and finch companies can easily use this digital dollar to program with.
Stablecoins are attractive to investors who wary of the volatile cryptocurrency climate. This is because, being pegged to fiat currencies, stablecoins are subject to less significant fluctuations and are typically more consistent.
Coinbase and Circle Collaborate
Starting today, Coinbase customers in supported jurisdictions can buy, sell, send, and receive the USDC stablecoin. The advantage of a blockchain-based digital dollar is that it's easier to send, use in decentralized apps, and store locally. Get started: https://t.co/O6tgs8tMxz pic.twitter.com/NN2NLY4gwE
— Coinbase (@coinbase) October 23, 2018
As mentioned, USDC emerged from a collaboration between Coinbase and Circle. The two companies have come together to create the new CENTRE Consortium. Both companies take a compliance-first approach to cryptocurrency. Therefore, they feel they are a fitting pair to offer USDC to the public.