Coinbase to add ERC20 tokens support.
March 28, 2018 6:30 am,
Coinbase, through a tweet, exclaimed that they are forwarding support to Ethereum backed ERC20 tokens by stating: “We’re excited to announce our intention to support the Ethereum ERC20 technical standard for Coinbase in the coming months.”
The announcement came on 26th March 2018 via their official Twitter account at approximately 6:38 p.m. GMT.
ERC20 is the name of the technical standard used to create tokens based on the Ethereum network, of which there are more than 50,000; for example, we have Bancor, Qtum, OmiseGo, etc.
In the past, Coinbase’s announcements have had an immediate and noticeable impact in the cryptocurrency markets; however, the bearish run that has dominated the crypto markets since the beginning of the year hardly coughed at Coinbase’s announcement. Perhaps this will change when a more concrete timeline for the new feature is known.
This decision will affect Coinbase in more than one way as it has a number of products likely to be impacted. One such is with respect to Coinbase Custody. The first and potentially the most important for institutional investors is Coinbase Custody. Coinbase Custody is a digital asset custody service that provides secure storage and financial controls of large holdings. No one knows how many customers are using custody, but it is seen as the most prominent digital asset custodian in the U.S. Therefore, the addition of ERC20 tokens might open up the door for a more diverse set of cryptocurrency trusts.
Also, besides offering a wider asset offering to its customer base, Coinbase “believes that support for ERC20 will also give [it] a path to enabling the safe recovery [of] customer ERC20 assets inadvertently sent to Coinbase Ethereum addresses.”
The post continues to say that the company will not disclose “support for any specific assets or features at this time,” stressing that the announcement complies with company guidelines for new asset listings.
With regards to GDAX, which is Coinbase’s sister exchange, the company has noted that the GDAX team will wait for additional regulatory clarity before [deciding] which ERC20 assets to support on GDAX. However, ERC20 support will afford GDAX the ability to securely recover customer ERC20 assets accidentally sent to the exchange’s Ethereum addresses.
Read this for related news: http://bangaloreweekly.com/2018-03-26-erc20-hits-24-hour-volume-of-2985-00-erc20/