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Coinbase To Add ERC-20 Token Support

Coinbase announced in a Tuesday blog post its intention to support the Ethereum ERC20 technical standard in the coming months, paving the way for supporting ERC20 assets (the most popular vehicle for ICOs thus far) across the company’s product platform.

Coinbase is a San Francisco-based digital currency wallet and platform founded in June of 2012. It boasts having over 10 million users in 32 countries and is the largest cryptocurrency exchange operating in the United States by trading volume.

ERC20 is the standard used by Ethereum that anyone wishing to issue a token on its blockchain must comply with. At the moment there are 59,949 Ethereum contracts in existence and Ethereum is currently the second most valuable blockchain with a market capitalization of 44.44 billion.

As per this official blog post from Coinbase, the company announced the coming addition of native support for ERC20 on their Ethereum wallet and Decentralized Application (Dapp) browser Toshi.

In addition to the company’s flagship Coinbase exchange, products of the company to be affected by the efforts to support ERC20 include Coinbase Custody, GDAX exchange, Coinbase Asset Management, and Coinbase Commerce.

Per established guidelines, Coinbase will only list assets after they are listed on GDAX. Factors such as liquidity, price stability, and other health metrics will be used to assess which ERC20 could be added to Coinbase after being listed on GDAX.

A Coinbase blog post from March 16 reiterated that any effort to add new assets on any of the company’s platforms will be done following a strict process. The company has had to work to build trust for this roll out, and any further future roll outs, after the launch of Bitcoin Cash (BCH) support led to a class action lawsuit alleging the company engaged in insider trading.

 

Image source Coinbase.com