Crypto Exchange Coinbase Plans To Add ERC20 Token Support In the Coming Monthsbr>
Cryptocurrency exchange Coinbase has announced that it will be providing support for ERC20 tokens in the coming months.
“This paves the way for supporting ERC20 assets across Coinbase products in the future, though we aren’t announcing support for any specific assets or features at this time,” Coinbase said in blog post. “We are announcing this both internally and to the public as consistent with our process for adding new assets.”
ERC20, the ethereum token standard, is a technical standard used for smart contracts on the ethereum blockchain. ERC20 defines a common list of rules that an ethereum token has to implement, giving developers the ability to program how new tokens will function within the ethereum ecosystem. This token protocol became popular with crowdfunding companies working on initial coin offering (ICO) cases.
Coinbase said the Custody team will be evaluating a set of assets to support for deposits and withdrawals. GDAX — Coinbase’s sister exchange — will wait for additional regulatory clarity before they decide which ERC20 assets to support on the platform. Any asset listed on GDAX will be added to the Coinbase Index on a market capitalization weighted basis.
“Coinbase will only list assets after they are listed on GDAX,” the exchange said. “After evaluating factors such as liquidity, price stability, and other market health metrics, we may choose to add any ERC20 asset added to GDAX to the Coinbase platform. It’s also worth repeating that GDAX will likely have more assets listed on the platform than the Coinbase platform, i.e. listing on GDAX does not guarantee listing on Coinbase.”
The move comes just a month after the company began supporting SegWit transactions, a move that cut transaction fees considerably.
Earlier this month, the US Securities and Exchange Commission (SEC) said that companies serving as venues for cryptocurrencies that are securities will need to register with the agency as a national exchange, or qualify for an exemption.
Coinbase said the exchange is exempt from SEC registration requirements as they do not list assets that could be considered securities.