Coinbase Has Launched a New Stablecoin

Coinbase Has Launched a New Stablecoin!

Coinbase, the most popular cryptocurrency exchange in the United States, has listed the stablecoin Euro Coin (EUROC).  Similar to the USD Coin (USDC), Circle’s EUROC was not previously available on major cryptocurrency exchanges.

It is also worth noting that Coinbase’s launch came after the SEC threatened the stablecoin industry!

Binance On Its Heels

Binance CEO Changpeng Zhao (CZ) stated that Binance will also support stablecoins pegged to fiat currencies other than the US dollar. Coinbase will facilitate Euro Coin (EUROC) transactions on the Ethereum network. The exchange warned depositors on other cryptocurrency networks that their coins could be lost.

According to the exchange’s announcement, the process will begin on Feb. 22, when liquidity requirements for EUROC are reached.

Coinbase Has Launched a New Stablecoin

How Does Coinbase New Stablecoin Work?

Similar to the USD Coin (USDC), the Euro Coin (EUROC) is issued by Circle on a full reserve basis. According to the company, the Euro Coin, intended to be stable, is backed by euro balances in euro bank accounts to the extent that it can be redeemed at any time on a 1:1 basis.

The U.S. Securities and Exchange Commission (SEC) recently issued a Wells Notice threatening transactions involving BUSD, the stablecoin backed by Binance. As a result, the issuer of BUSD stated that it would stop minting the Paxos token, which led to a backlash from the market.

Investors are wondering how Binance, the largest cryptocurrency exchange in the world, will solve this stablecoin problem.

In conclusion, listing Euro Coin on Coinbase is a positive development for the cryptocurrency industry, as it provides users with a stable and reliable option for trading and transacting in digital currencies. As stablecoins continue to gain popularity, more exchanges will likely follow Coinbase’s lead and add stablecoins to their offerings.

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