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During the Money20/20 conference in Las Vegas, the popular crypto exchange Coinbase announced the launch of USD Coin (USDC), the first stablecoin that can be used on the platform. The technology behind USDC was developed through a collaboration between Coinbase and the blockchain payments specialist Circle.
Coinbase customers in supported jurisdictions will now be able to buy, sell, send and receive USDC through both the online portal and using Android and iOS applications. The value of the new crypto currency, the company explains in the official announcement, will be fully supported by U.S. dollars, which will be deposited in bank accounts subject to public audits of the financial statements.
Asiff Hirji, President and COO of Coinbase, commented:
"We are distributing a fully verified, fully transparent 1:1 dollar-supported stablecoin from the U.S. dollar. We think this is an important step towards innovation in the crypto currency sector.
A stablecoin is a digital currency whose value is closely linked to that of another currency, such as the U.S. dollar, and designed to minimize price volatility.
Last week, the controversial stablecoin Tether (USDT) suddenly lost its peg to the dollar, reaching $0.91 for a short period of time. It seems that this instability was caused by the alleged insolvency problems of Bitfinex, whose CEO also manages Tether.
Following this news, renowned cryptocurrency investor Michael Novogratz commented that USDT should provide more transparency about its operations. "I think Tether hasn't done a good job in terms of transparency," he said, referring to the company's offshore activities.