Coinbase Eyes Listing ERC20 Tokens

Coinbase subsidiary GDAX to wait for additional regulatory clarity before any specific listing.

by Marin Marinov
26 March • 3.5 min
In Markets

Coinbase, the largest US cryptocurrency exchange, said on Monday it plans to list for trading tokens based on the Ethereum ERC20 standard. GDAX, Coinbase’s exchange platform servicing advanced and professional traders, will wait for additional regulatory clarity before deciding on adding new assets.

Currently, the Coinbase platform, which targets mainly newcomers in digital trading, and GDAX only support Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) for inter-altcoin trading or exchange for USD, EUR and GBP.

Coinbase will only list assets after they are listed on GDAX. 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,” the San Francisco-based exchange said in a statement.

one big coin and fiat dollars around

“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,” it added.

ERC20 Tokens

ERC-20 is a token standard for the Ethereum network, defining a common list of rules to follow, like how tokens are transferred and how users can access data about a token. Most of the new projects and initial coin offerings (ICOs) on the Ethereum network observe the ERC-20 rules, so all ERC-20 tokens are compatible with each other. Moreover, almost all of the wallets which support the ether coin also support ERC-20 tokens.

Coinbase’s potential support for ERC-20 tokens came a few days after the company published its rules for adding new assets on March 17.

If the asset passes by the legal and risk review, the recommended asset is presented to the Coinbase executive team for approval. If approved by the executive team, the asset selection committee promptly announces which new asset will be added to our platform,” Coinbase explained.

Coinbase has licenses for trading in most of the US states, as well as virtual currency and transmitter license from the New York Department of Financial Services. The company is also registered as a Money Services Business (MSB) with the US Department of Treasury.

Coinbase and Ethereum

Brian Armstrong, Coinbase co-founder and CEO, has publicly announced his support for Ethereum: “I think bitcoin was my first true love, but it did break my heart a little bit,” Armstrong has said. “It’s [Ethereum] actually doing about double the number of transactions per day as Bitcoin already, and their scaling plans — the roadmap, in my view, is much better,” Armstrong has added in an interview with “Too Embarrassed to Ask” podcast.

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Image`s source: under CC BY-SA 3.0

Fred Ehrasam, co-founder and board member of Coinbase, has outlined his support for Ethereum: “What is very real, though, is the possibility that Ethereum blows past Bitcoin entirely. There is nothing that Bitcoin can do which Ethereum can’t. While Ethereum is less battle tested, it is moving faster, has better leadership, and has more developer mindshare,” Ehrasam has written in the Coinbase blog.