Coinbase to List Competitor-Backed Stablecoin Amidst Growing Interest

Tony "The Bull" Severino

6 years ago

2 mins read

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Coinbase will reportedly list a stablecoin initially backed by one of its closest competitors after joining the consortium behind the USD-pegged cryptocurrency.

Coinbase Joins CENTRE Consortium, Will List USD Coin

San Francisco-based cryptocurrency exchange Coinbase recently listed decentralized exchange protocol utility token 0x (ZRX) to the list of cryptocurrencies it offers to consumers for trading. This follows a new policy update that was put in place, eventually leading to “thousands” of cryptocurrency tokens being offered by Coinbase.

The firm also teased that it was exploring Stellar, privacy-focused Zcash, Cardano, and the Brendan Eich-developed Basic Attention Token (BAT) as the next tokens that may be added to Coinbase’s offering. However, a stablecoin – USD Coin – could be the next token to be added to Coinbase according to a new announcement from the company.

Coinbase will be joining the CENTRE as a “founding member” – the consortium behind USD Coin (USDC) that includes the Goldman Sachs-backed, Boston-based Circle. CENTRE’s official website has already been updated to include a number of Coinbase mentions.

CENTRE is the consortium behind the recently launched, open source, smart contract-based USD Coin – an ERC20 “stablecoin” backed one-to-one by a corresponding U.S. dollar, just like competitor Tether claims to be. By joining CENTRE, Coinbase is also joining forces with competitor Circle, who originally launched USD Coin on its Circle Trade and Circle Poloniex platforms.

Interest in Stablecoins Heats up as Tether’s Stronghold Diminishes

Stablecoins are currently the talk of the cryptocurrency community.

The controversy surrounding current reigning champion of stablecoin market share, Tether, has recently come to a head after rumors circulated surrounding the company’s solvency, and continued fear that Tether tokens aren’t properly backed by a corresponding U.S. dollar in Tether’s reserves.

Despite a third-party audit, a mass exodus from Tether occurred two weeks ago. This saw investors rapidly liquidating their Tether holdings into Bitcoin, causing a price discrepancy between exchanges like Binance that use Tether as a base trading pair against Bitcoin and those that use fiat trading pairs like Coinbase. The premium spiked to nearly $1,000 at one point.

The timing of the unrest and fear couldn’t have been worse for Tether’s market share, as a slew of new stablecoins have been launched in recent weeks. In addition to CENTRE’s USD Coin, crypto startup Paxos released the Paxos Standard and the Winklevoss-owned Gemini launched the Gemini Dollar. Once investors began dumping Tether, driving the once stable price of $1 to as low as $0.92, exchanges began listing the new stablecoins en masse.

Now, with Coinbase – arguably the biggest name in the cryptocurrency space and among the highest valued startups – joining CENTRE alongside Circle, the battle for the top stablecoin will only continue from here.

Featured image from Shutterstock.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

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In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.