Coinbase is now an XRP custodian, plans to list Circle USDC stablecoin

Coinbase has been granted a licence for XRP custodial services by New York State.

The XRP custody services seems like a first step before listing, although Coinbase has not taken that approach before. XRP is higher on the news – see 30-minute live XRP chart below.

New York’s Department of Financial Services issued a press release revealing the news. In part it reads:

“Today, DFS authorized Coinbase Custody Trust to offer narrow services to operate as a custodian for virtual currencies, including Bitcoin, Bitcoin Cash, Ethereum, Ether [sic] Classic, XRP and Litecoin.”

Coinbase adopts Circle’s USDC stablecoin

The news comes at the same time as Coinbase announced in a blog post that it is listing the stablecoin from Goldman Sachs-backed Circle – USDC.

Circle’s USDC is pegged to the dollar 1:1 and and audited, unlike Tether. USDC’s peg does not move up and down against its reference. USDC will be listed on Coinbase Pro and is already storable in the Coinbase Wallet product.

And just in case you were wondering what a stablecoin is for, Coinbase provides a handy breakdown of what it envisages the asset being used for.

According to Coinbase, it will speed up payments; can be used as a stable dollar in dapps and as a “programmable dollar” for crypto projects and fintechs (see video below).

“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.”

Coinbase and Circle are working together through the CENTRE Consortium, which Coinbase describes as “compliance-first approach”.

USDC is a ERC20-compliant token, the second one after 0X on the Coinbase platform.

If you want a deeper dive, take a look at the video Coinbase has produced on USDC:

Ripple’s XRP token has risen 3% to $0.46 on the news, according to coinmarketcap. Market participants anticipate the custody initiative is a precursor to the listing of XRP on the Coinbase exchange.

XRP 30-minute chart

About the Author

Gary McFarlane
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK's second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane

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