The popular crypto platform Coinbase has added support to Circle’s backed stablecoin USDC. The information has been released by Coinbase and Circle in a blog post a few days ago. After announcing this partnership, the stablecoin Tether (USDT) lost 3% of its market capitalization.
Tether Falls After Coinbase Announces USDC Support
Although we have not seen volatility in Tether, its market capitalization has fallen 3% in just a few hours. According to CoinMarketCap, USDT moved from $2.065 billion dollars to $1.996 dollars a few hours later. This follows a very hard month for Tether, that lost its stability during the current month.
The market capitalization of USDT has been heavily affected by rumours about its funds. From October 9 until today, Tether lost almost 30% of its market capitalization. A few weeks ago, Tether lost its peg with the US dollar.
Coinbase customers will now be able to buy, sell, and receive USDC on the platform. At the moment, the company informs that US customers outside New York state will be able to buy and sell USDC. At the same time, users from all over the world can send and receive this stablecoin.
This is very important for the virtual currency market since it’s the first time Coinbase supports a stablecoin. During the year, several stablecoins have been launched. However, Coinbase decided to partner with Circle and allow its users to have a stable option in the platform.
According to the official press release, USDC is 100% collateralized by a corresponding USD.
Coinbase and Circle wrote about the USDC:
“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.”
In order to add support to this stablecoin, Coinbase and Circle worked together as co-founders of the new CENTRE Consortium. In the near future, USDC will be also available to be traded on Coinbase Pro.
Back in September, the cryptocurrency exchange Gemini launched the Gemini Dollar (GUSD). This stablecoin is already supported by HitBTC and it would be added to many other exchanges. The crypto market is moving towards stablecoins but it is trying to search for other alternatives rather than Tether.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.