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Coinbase Adds the USDC Stablecoin

The cryptocurrency exchange has added the first stablecoin to its platform

Coinbase has confirmed that the USDC stablecoin is now trading on the cryptocurrency exchange. The company announced in a blog post that support would be added for USDC on October 23rd, with Coinbase Pro included in the coming weeks.

The addition of USDC could be seen as a “vote of no confidence” in tether, which saw a sharp sell-off last week, breaking the cryptocurrency’s 1:1 peg to the U.S. dollar, as traders continued to question the legitimacy of the tether project’s reserves.

The USDC stablecoin has actually been co-developed by Coinbase and Circle under the CENTRE banner and the blog stated,

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.

The new stablecoin is already supported on Coinbase Wallet, where users can store ERC20 tokens. Listing a stablecoin one week after the addition of 0x on the exchange is another sign that Coinbase are adopting a more aggressive strategy for growth as competition heats up amongst exchanges.

The timing of the addition will be uncomfortable for tether and highlights the growing competition in stablecoins in the cryptocurrency space. The listing of USDC on one of the most secure and popular exchanges is a serious threat to the dominance of tether’s position and its current market capitalization.