Coinbase is now allowing accredited investors with deeper pockets the ability to utilize the Coinbase Index Fund, which offers exposure to every asset listed on the popular exchange.
The previously announced Coinbase Index Fund has officially opened for investments of $250,000 to $20M.
Reuben Bramanathan, Product Lead of Coinbase Asset Management, stated in an official announcement:We’ve seen overwhelming interest from investors since we announced the fund earlier this year. At this stage, we have opened the fund to those who wish to invest $250,000 to $20M.
The fund is geared towards institutional investors and those with a lot of money to invest and offers investors exposure to each and every asset listed on Coinbase’s exchange. The cryptocurrencies are weighted by market capitalization, which aims to ensure effective diversification in the event one particular cryptocurrency underperforms.
The Coinbase Index Fund will also include Ethereum Classic, after the announcement earlier this week that the popular San Francisco-based cryptocurrency company would begin supporting the cryptocurrency in the coming months.
Currently, only accredited investors residing in the United States are eligible to utilize the Coinbase Index Fund. However, Coinbase plans to broaden its horizons with other offerings for currently ineligible investors, stating:We’re working on launching more funds which are accessible to all investors and cover a broader range of digital assets.
BAD TIMING (OR NOT)
The launch of the Coinbase Index Fund comes at a time when many retail investors are being shaken out of the volatile bear market.
Each and every asset currently listed on Coinbase is undergoing a rather steep ‘correction.’ Bitcoin (BTC) is currently down, at the time of this writing, 14 percent over the last week. Ethereum (ETH), meanwhile, is down 21 percent, while Bitcoin Cash (BCH) and Litecoin (LTC) are down 25 percent and 20 percent respectively.
There was a time when such an announcement from Coinbase would’ve sent prices skyrocketing — but those days appear to be well and truly over.
That said, institutional investors and those eligible to take advantage of the Coinbase Index Fund might soon find the prices just to their liking.
Coinbase Opens DAI Stablecoin Trading to Retail Customers
Crypto exchange Coinbase will now let its retail customers buy or trade the DAI stablecoin, so long as they don’t live in New York.
The exchange announced Thursday that it was adding DAI on its website, as well as its Android and iOS apps, letting customers buy, sell, convert, trade or store the stablecoin.
Customers in every jurisdiction – except New York initially – can now access the cryptocurrency, which runs on top of the ethereum blockchain.
Although Coinbase did not explain why the token is not yet available in New York, it may be waiting on approval from the state’s Department of Financial Services, which in the past has reserved the right to approve tokens before they are listed on exchanges.
Unlike other stablecoins, DAI is backed by collateral on the MakerDAO platform, but still seeks to maintain a peg to the U.S. dollar, the exchange noted, adding:
“The relevant whitepapers explain that MKR and DAI tokens form a paired set of assets in which MKR provides governance, and DAI is a decentralized, collateral-backed stablecoin.”
Other stablecoins, such as the Gemini Dollar or the Paxos Standard, are backed on a 1:1 basis by dollar holdings.
The stablecoin has notably had difficulty maintaining its peg in the past, with MKR token holders voting repeatedly to increase the so-called “stability fee” in an effort to ensure that DAI continues to hold its peg.
Borrowers pledge ether as collateral to take out DAI; when they want to get their ether back, they have to return their DAI, plus the stability fee, payable in MKR or DAI. Hence, increasing the stability fee incentivizes borrowers to return their DAI, reducing the supply on the market and theoretically driving their price back up to $1.
More recently, token holders voted to decrease the fee, but this decrease failed to activate due to a lack of voter turnout. As of press time, the fee remains at 19.5 percent.
DAI became available to Coinbase Pro, the exchange’s platform for day traders, in December, but now even entry-level users can buy it too.
It is the latest token Coinbase has listed in recent months, having just recently opened up XRP trading to New York residents.
Coinbase Commerce enables businesses to accept USD Coin [USDC] for payments
The platform announced on Twitter,“Starting today, businesses using Coinbase Commerce can now accept payments in USD Coin (USDC), a US dollar-backed stablecoin. Our merchants can now take advantage of the many benefits of accepting cryptocurrency but at a stable price.”
Further, the blog post stated that acceptance of the stablecoin would be as seamless as acceptance of cash for businesses. Additionally, this payment mode would not encounter the problems faced by credit card payments, considering it enables merchants to accept payments from customers anywhere in the world within minutes and without transaction fees.
Eliyahu Switzer, a Twitter user, said,“What are the benefits of accepting a centralized “cryptocurrency?”
That apart, CEO of Coinbase Custody, Sam McIngvale, revealed that Coinbase Custody was baking with delegated client funds since cycle 105. He stated that the firm had produced “over 100 blocks and captured a few steals too” so far, adding that their efficiency was more than a hundred percent.
Our staking infrastructure is off to a good start 👌 pic.twitter.com/wVnURFfCI6
— Brian Armstrong (@brian_armstrong) May 20, 2019
@Stevenut, another Twitter user, commented,“Congratulations on making money with
#tezos @CoinbaseCustody perhaps you might like to give something back and list #tezos so rest of us can benefit”
The announcement of Coinbase Custody providing institutional support for Tezos [XTZ] baking was made in March 2019. Offline staking support was extended to Tezos by the platform mainly because of its Delegated Proof-of-Stake architecture, along with high demand from the customers’ side.
Worldwide crypto acceptance is within reach thanks to Coinbase Commerce’s USDC stablecoin integration
Crypto as a method of payment has just gotten easier. Coinbase Commerce has expanded to include USD Coin as a settlement option, allowing merchants to accept crypto without transaction fees, chargebacks, or price volatility.
Coinbase Commerce, an app launched last year to facilitate merchant payments, now accepts Coinbase’s native USD Coin(USDC). The stablecoin was the result of a partnership between Circle and Coinbase in October of 2018.
The update represents a stride for crypto as a medium-of-exchange. Bitcoin, as the pioneer cryptocurrency, has relatively high fees and long transaction confirmation times. Meanwhile, the fiat-backed USD Coin allows merchants to get the benefits of crypto without the drawbacks.
Additionally, payments conducted in USD Coin have zero transactions fees and do not expose merchants to costly chargebacks. Unlike credit cards, merchants can accept USDC without a traditional bank account anywhere in the world.
Vendors have full custody over these funds and can accept payments directly to a wallet they control.
USDC is directly integrated into Coinbase and Coinbase Pro, allowing users to instantly convert between fiat and USD Coin. Coinbase Commerce is also integrated with other popular e-commerce platforms, such as Spotify and WooCommerce, making implementation within reach of hundreds of thousands of online merchants.
The move is another milestone for crypto as a method of payment. Previously, the cost or lack of interest caused merchants such as Steam and Twitch to reverse their decisions on accepting crypto.
However, the technology around payments improved drastically and projects such as Ethereum, Litecoin, Bitcoin Cash, and XRP are able to transmit payments via blockchain with much lower fees. As crypto as a mechanism of payment improves it is expected that adoption will follow.