Coinbase Supports USD1 Stablecoin on Ethereum (ERC-20)
Coinbase has announced support for the World Liberty Financial USD1 stablecoin as an ERC-20 asset on the Ethereum network. The USD1 stablecoin will be available for deposits, withdrawals, and trading on Coinbase and Coinbase Exchange in eligible regions starting August 22. Traders are advised to use only the Ethereum network for USD1 transfers to avoid potential loss of funds.
This ERC-20 listing broadens Coinbase’s stablecoin offerings and boosts liquidity on the Ethereum network. By adding the USD1 stablecoin, Coinbase provides users a new US dollar–pegged trading option and reinforces its position in the stablecoin market.
Neutral
Listing a new stablecoin on Coinbase and Coinbase Exchange is unlikely to significantly shift market sentiment for major cryptocurrencies. The support for the USD1 stablecoin primarily expands stablecoin offerings and enhances liquidity on the Ethereum network, which historically has had a neutral impact on price movements. However, increased stablecoin availability can boost trading volume and facilitate DeFi activity in the short term. In the long run, adding diverse US dollar–pegged tokens strengthens the stablecoin ecosystem, though it rarely triggers major bullish or bearish trends.