Coinbase: Stablecoins will become the backbone of financial services

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Cryptocurrency exchange Coinbase believes that stablecoins backed by the US dollar and other fiat currencies will expand access to financial services and Web3.

Coinbase posted a series of messages on Twitter,in which it argues that stablecoins will become the basis of financial services in the future. They will play an important role in the changing financial landscape and will be a key component of more disruptive changes as digital currencies are adopted.

“Stablecoins provide a bridge betweentraditional financial system and crypto-economy, allowing fiat currencies to exist in a form that can move more freely and efficiently on blockchains,” Coinbase notes.

The company notes that the costMany cryptocurrencies can fluctuate by the minute, “so owning a stablecoin like USDC gives buyers and sellers the stability and confidence needed in times of volatility.”

According to the platform, the reliability of stablecoinsis due to the fact that these digital currencies are backed by US dollars or assets of equivalent fair value held in US regulated financial institutions.  

Coinbase believes that stablecoins will be useful for both retail users, developers and large organizations. They can also serve as a gateway to the world of Web3.

Let us recall that the stablecoin USD Coin (USDC), released in 2018, is a joint project of the Coinbase exchange and the Circle company.