Coinbase to Add Support for ERC20 Tokens

The ERC20 standard has become popular in the recent past for teams to quickly build interoperable contracts/assets. Coinbase will add tokens after listing on GDAX and after evaluating them on metrics such as liquidity and stability.  

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Coinbase, which currently supports Bitcoin BTC, will add ERC20 compliant tokens in the coming months according to a post on their official blog.

It did not include an exact schedule for adding support in their announcement. This may provide a relief to the exchange, which is trading at its lowest level since mid-December and almost 50 percent down in the past month.

The move could see more assets supported for withdrawals and deposits on GDAX or Coinbase. They said the custody team is evaluating assets to support the two. However, they did not announce which specific tokens they will be adding but say any asset listed on GDAX Coinbase Asset Management will add to the Coinbase Index on a market capitalization weighted basis.

Moreover, they will add the assets after adding them on GDAX and after evaluating them using factors such as liquidity, stability, and other market health metrics. Therefore, there is no assurance that every asset listed on GDAX will list on Coinbase.

The move comes after the exchange added SegWit support, which reduced transaction fees significantly. It might also assist recovery of ERC tokens sent to BTC addresses on the platform.

Become popular

ERC, which means Ethereum Request for Comment, is a technical standard used for Ethereum smart contracts. The erc20 standard becomes popular now as the number of tokens continues to increase.

According to Coinbase, ERC20 is now a popular way for teams to quickly build interoperable contracts/assets.

What’s your say regarding the addition of ERC20 tokens on Coinbase?  Do let us know on Twitter and Telegram.

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Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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