Connect with us

Coinbase

Coinbase Opens DAI Stablecoin Trading to Retail Customers

Published

on

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.

Peg problems

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.

As a result, the stability fee, which acts as a sort of interest rate on new DAI issuance, came close to 20 percent over a period of five months.

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.

 

source:coindesk

Advertisement
Click to comment

Coinbase

Coinbase reports issues with card purchases & processing, days after its debit card debut in Europe

Published

on

Digital currency exchange Coinbase recently announced its Visa debit card services for several countries in Europe, enabling many of its European users to spend cryptos like Bitcoin [BTC], Ethereum [ETH], and Litecoin [LTC] at any merchant shop accepting Visa. This announcement from Coinbase came at a time when most tech companies and crypto-enthusiasts were devising ways to use crypto in the mainstream to spur crypto-adoption.

However, within days of the launch, there were certain bugs reported in the use of these cards. Coinbase Support managed to inform the community about the problem, after many users reported facing issues while processing their debit/credit cards. In an incident report filed by Coinbase, the exchange stated that it was identifying the issue and working on a fix. The report read,

“A fix has deployed. Card purchases will remain disabled for a few more minutes to let the pending payments finish processing.”

Even though the problem was solved within an hour and payments re-enabled, the exchange said that it would monitor its status for a bit longer. This incident impacted payments via credit and debit cards. However, over two weeks back, several users had reported facing a similar problem.

The Coinbase report read,

Coinbase had then resolved the issue, but asked users to deploy version 6.0.2 or later, if there were still any issues with the app. Although technical difficulties are common in the tech business, user experience matters the most. Many users subsequently took to Twitter to applaud Coinbase’s efforts, despite the fact that some continued to diss the exchange. “Source :ambcrypto

Continue Reading

Coinbase

Coinbase Custody Now Has More Than $1.3 Billion Worth of Assets

Published

on

It was revealed that Coinbase Custody now has under its supervision $1.3 billion assets, and it is expected that the sum will reach $ 2 billion soon.

The CEO of Coinbase Custody and Philip Martin, Sam McIngvale, said while in a visit in the UK revealed that the platform already has $1.3 billion assets under custody [AUC], with the sum being constantly on the rise.

The exchange then tweeted a post after this, with them addressing several common misconceptions which are present in the industry:

“There’s a narrative out there that institutional-grade services don’t exist in crypto. This isn’t true. Coinbase Custody is a regulated, insured and secure custodian. We have $1.3bn AUC and expect to hit $2bn soon. We have no intention of stopping there.”

The executives of the custodial service also talked about the region’s crypto economy, their opinion regarding security and future expansion plans for the exchange. Coinbase Custody tweeted the following:

“We really built our security by drawing on a range of different technologies and systems. We’re always adapting, that is what gives us this strong security foundation.”

The executives also stated that the custodial platform caters to more than 90 clients, with almost 40% of them being from outside the US. Coinbase Custody went through a recent expansion, and went over U.S borders and sprawled into 11 Latin American, Asian, and overseas regions. The platform’s near-term goals were also discussed, and there were hints towards diversifications plans in London.

“As crypto matures as an asset class, we see financial hubs like London becoming centers for crypto innovation. We’re excited to be one of the companies driving this.”

The CEO of Coinbase, Brian Armstrong, made a previous comment that almost 70 institutions registered with the custody service platform which was launched last year for securing crytpto assets.

News Source

Continue Reading

Coinbase

Coinbase Custody has $1.3 billion assets under custody; expects to hit $2 billion soon

Published

on

Sam McIngvale, CEO of Coinbase Custody and Philip Martin, in a recent visit to the UK revealed that the platform already has $1.3 billion assets under custody [AUC] and expects to touch $2 billion soon. The platform’s Twitter handle tweeted about the event soon after, with Coinbase Custody referring to some common misconceptions that exist in the ecosystem, tweeting,

“There’s a narrative out there that institutional-grade services don’t exist in crypto. This isn’t true. Coinbase Custody is a regulated, insured and secure custodian. We have $1.3bn AUC and expect to hit $2bn soon. We have no intention of stopping there.”

The Coinbase Custody executives also discussed institutional crypto-economy in the region, their take on security and Coinbase’s expansion plans ahead. In a series of tweets, Coinbase Custody quoted,

“We really built our security by drawing on a range of different technologies and systems. We’re always adapting, that is what gives us this strong security foundation.”

The executives also revealed that Coinbase Custody provides services to over 90 clients, nearly 40% of whom are outside the US. Coinbase Custody recently extended its reach beyond the U.S and across 11 Latin American, Asian, and overseas territories. They further touched upon the platform’s near-term goals and hinted at diversification plans in London.

“As crypto matures as an asset class, we see financial hubs like London becoming centers for crypto innovation. We’re excited to be one of the companies driving this.”

Brian Armstrong, CEO of Coinbase, had previously commented that approximately 70 institutions had hopped on to the custody service platform that made its debut last year to secure digital assets.

The CEO had also revealed an infusion of $1 billion assets under management [AUM], after 70 institutions signed up and added nearly $150 million AUM per month. Coinbase Custody has since scaled significantly and according to Armstrong, the space would grow rapidly as institutional activity increases. Source :ambcrypto

Continue Reading
Advertisement
Advertisement