Coinbase Inc., one of the biggest U.S. cryptocurrency trading platforms, said it’s joining a consortium, which includes Circle Internet Financial Ltd., that is offering a digital token pegged to the value of the U.S. dollar.
USD Coin will be the first so-called stable coin supported by San Francisco-based Coinbase. Circle was the first issuer of the coin in September. The consortium, called Centre, will serve as a platform for users to make deposits from traditional bank accounts, convert fiat currency into tokens issued by members to facilitate transactions and provide the ability to shift back to the greenback.
There’s been a slew of new issuance of stable coins recently as industry enthusiasts try to find more uses for crypto. Tether is the largest of the bunch, but is beset by doubters amid concern as the company has refused to be audited and won’t disclose its banks. Gemini Trust Co. and Paxos Trust Co. both launched stable coins in September.
By Julie Verhage