News Update: Coinbase to Add Support for ERC20 Tokens
In a move that probably sent digital currency investors flying to Twitter, Coinbase just announced that it plans to implement support for ERC20 tokens.
ERC20 is a technical standard that's used for Ethereum smart contracts. This means that ERC20 tokens, or tokens built on the Ethereum blockchain, have become a popular way for blockchain startups to build interoperable contracts and digital assets.
Coinbase adding ERC20 support could mean a couple of things for investors...
For starters, the Coinbase custody team can now decide what assets they want to support for both withdrawals and deposits on the Coinbase exchange. It's likely that Coinbase will continue to add more tokens to its platform in the future. Currently, there are no announcements about what the next token on the Coinbase platform would be.
Second, ERC20 assets won't just be on Coinbase. They could also be added to GDAX, Coinbase's professional trading platform. Coinbase will only list assets that have previously been listed on GDAX. The digital currency company uses GDAX to evaluate factors like liquidity and price stability. A token being listed on GDAX does not necessarily mean that it will be listed on Coinbase.
Investors who are interested in learning more about Coinbase's ERC20 announcement should take a look at the company's blog on the topic here.
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