Coinbase, one of the largest cryptocurrency exchanges in the market, announced the unification of USD and USDC order books. This would make it easier for traders and investors to deposit and withdraw funds (USD and USDC) seamlessly without focusing on one of these two currencies.
Coinbase Announces USD and USDC Unification
Coinbase continues with the changes on its exchange. This time, the goal is to unify by July 13 USD and USDC order books. As per the official announcement, with the merge of these two currencies, order books will offer a more seamless trading experience with deeper liquidity for both USD and USDC.
Thanks to the merge, Coinbase users will be able to deposit USD or USDC. That means that the account will be credited on a 1:1 basis with USD. Then, if a user wants to withdraw funds, they can choose whether to withdraw USD or USDC. At the same time, Coinbase Prime users can also convert USD and USDC without fees and trade on USD order books.
Brain Armstrong, the CEO of Coinbase, said that this was one of the main improvements they wanted to bring to the exchange. On Twitter, he wrote:
“Excited for unified USD order books – has been on the list for a while. Loving the amount of stuff we’ve been shipping in the past week (native DEX trading in our main app, Solana staking, etc). Great product execution in down markets is the way.”
It is worth taking into consideration that stablecoins such as USD Coin (USDC) have been considered a risk by many investors who preferred to use fiat currencies rather than stablecoins to trade digital currencies. This comes after the collapse of Terra USD (TUSD) one of the largest stablecoins in the market a few months ago.
Another thing that we should take into consideration is that USDC is now the fourth largest cryptocurrency in the world and the second most valuable stablecoin in the market after Tether (USDT). Therefore, we see that this unification of USD and USDC order books could have a positive impact on investors in the cryptocurrency market, especially those that use the Coinbase exchange on a regular basis.
According to CoinGecko, USDC has a market capitalization of $56 billion, just $10 billion less than Tether, the largest and most popular stablecoin in the market. When it comes to trading volume, USDC is behind Tether. While USDT had a trading volume in the last 24 hours of $34.67 billion, USDC had a total trading volume of $4.06 billion.
Just to put it into comparison, Binance USD (BUSD), the stablecoin of the Binance exchange, had a trading volume during the same period of time of $3.46 billion but with a market valuation of $17.87 billion. Hence, it would be interesting to see whether the unification of USDC and USD order books on Coinbase would have a positive impact on trading volume for USDC and market capitalization in the coming weeks and months.