Coinbase will be looking to add ERC20 support, potentially paving the way for many more cryptocurrencies to be listed on its exchange.
Announced on Monday, Coinbase said they planned to support the Ethereum ERC20 technical standard in the coming months. There are no plans to list any specific coins on Coinbase products at present.
ERC20 is system of rules that enables a coin to run off the Ethereum network as well as interact with other ERC20 coins. It also acts as a standard for the writing of smart contracts. Eidoo, an exchange which focuses on cryptos based off the Ethereum network, lists 510 separate ERC20 coins, including Eos (EOS), Binance Coin (BNB) and VeChain (VEN).
We’re excited to announce our intention to support the Ethereum ERC20 technical standard for Coinbase in the coming months.
— Coinbase (@coinbase) March 26, 2018
Although Coinbase only lists four cryptocurrencies, it is one of the most popular exchanges in the world with over 20bn users reportedly. Founded in 2011, the exchange currently operates trading services in 32 countries and last listed Bitcoin Cash (BCH) just before Christmas, causing a 98% surge in the coin’s price.
GDAX – Coinbase’s cryptocurrency exchange for professional traders – will also offer support for ERC20 coins. New assets will first have to be listed on GDAX before the main exchange decides whether to do so as well: Coinbase has told users to expect more coins to be listed on GDAX than on the main exchange.
According to the blogpost, GDAX “will wait for additional regulatory clarity” before making any decision on listing a new cryptocurrency.
According to Coinbase’s new asset policy, a coin has to pass through a legal and risk assessment before a decision can be made by the exchange’s executive. Selections are based on a list of criteria, the Digital Asset Framework, which among other factors establishes if the coin is legitimate and safe with a strong potential to expand.
Earlier this month, speculation over the possibility of a Ripple (XRP) listing led to the price of XRP to shoot up above the $1 mark. After Coinbase dispelled the rumours, the coin soon sank in value and is currently trading at just under $0.60.