Coinbase waives fees for buying USDC with non-USD currency

abdelaziz Fathi

Nasdaq-listed crypto exchange operator Coinbase has waived commission fees for buyers of USD Coin (USDC) with non-USD fiat currency in a bid to increase the stablecoin adoption outside the United States.

Coinbase

In a blog post, Coinbase announced new policy changes aimed at building more on-ramps for users to access Circle-issued stablecoin.

Per its own research, 3x more USDCs are bought with the buck versus non-USD currencies. In part, the exchange explains, this was due to the fees that buyers outside of the US have to pay fees to convert their local currency into USDC.

Acting as a sort of safe haven where crypto traders can park their assets in volatile markets, USDC is an Ethereum-based ERC-20 coin, which makes it easy for wallets, exchanges and other smart contracts to interact with the token.

“The way to correct this, and accelerate adoption of USDC internationally, is by establishing global parity for all users. To achieve this, from the date of this announcement, Coinbase will waive commission fees when customers buy or sell USDC via any fiat currency on Coinbase, from AUD to ZAR,” Coinbase said.

Issued by Boston-based issuer Circle, USDC is the second largest stablecoin with a market cap of $43.9 billion. However, this figure is lower by more than 12 percent when compared to more than $50 billion a month ago, according to data from CoinMarketCap.

Part of the USDC’s struggle can be attributed to Binance’s recent decision to convert customers’ holdings in three rival stablecoins, including USD Coin (USDC), into its own token (BUSD). As a result of the move, Binance removed spot, future and margin trading with USDC, USDP and TUSD pairs.

The news comes shortly after Circle, for the first time since its launch in 2018, has revealed a breakdown of its reserves, as well as a complete list of USDC reserve custodians.

The breakdown, dated as of June 30, 2022, showed that Circle held 100% of its $55.7 billion reserves at the time were in cash and cash equivalents. Specifically, short-term United States Treasuries formed the majority of its cash equivalents category with $42.12 billion or a 75 percent share. The company also reported $13.58 billion in cash held at regulated financial institutions in the US.

Since launching its US dollar-pegged USDC in 2018, Circle has published third-party monthly attestations to confirm that it does possess sufficient capital to back each individual token on a 1:1 basis.

Read this next

Digital Assets

As SPAC bubble bursts, Circle terminates its $9 billion merger with Concord

USDC stablecoin issuer, Circle has terminated its planned $9 billion SPAC merger with publicly traded blank-check company Concord Acquisition Corp.

Institutional FX

Integral reports lowest FX volume in two years

Foreign exchange trading volumes dropped in November across Integral’s trading platforms as currency markets saw a relatively quiet period after consecutive months of strong trading activity.

Technology

CDEX: Avelacom announces connectivity to Cboe Europe Derivatives

“We anticipate that many of our customers from Asia will be particularly interested in getting exposure to pan-European products via just one venue, which CEDX offers.”

Retail FX

BUX acquires Spanish Ninety Nine’s retail brokerage unit

“Thanks to this acquisition, Ninety Nine users will have access to a wide range of services provided by BUX, such as investing in Spanish, European and US stocks, ETFs, cryptocurrencies, fractional investing and the BUX Savings Plan.”

Digital Assets

SEBA and HashKey partner to expand crypto in Hong Kong and Switzerland

SEBA Bank AG has announced a new strategic partnership with HashKey Digital Asset Group as part of both firm’s expansion efforts in Hong Kong SAR. 

Executive Moves

Broadridge appoints Martin Koopman as Chief Product Officer

“Martin has a proven record of driving product innovation both at Broadridge and at previous companies. His vision and proven ability to execute will be invaluable as we become the foremost SaaS provider to the financial services industry.”

Digital Assets

DAM rolls out Moonwalkers v1 testnet ahead of support for yield-generating collateral

“We want to champion innovation by making it easier to securely direct stablecoin liquidity away from Ethereum towards newer networks without the constant vulnerabilities posed by bridges. d20 will help accelerate the adoption flywheel of emerging networks, and this is our first step towards making our omnichain promise a reality.”

Institutional FX

FIA EXPO: ICE’s Brian Norris talks ESG investment, carbon credits and market data

The FIA Futures & Options Expo, now in its 38th year, convened the listed derivatives dealers, thought industry leaders and other stakeholders for two days of networking.

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

<