Coinbase, which saw unprecedented growth during the 2017 fiscal year thanks to Bitcoin mania and the cryptocurrency market bull run, will soon be offering support for ERC20 tokens.
In a blog post published early Monday, Coinbase made the announcement that they will be supporting Ethereum-based ERC20 tokens in the coming months. The support will extend beyond just Coinbase into their other platforms, including GDAX and the newly launched Coinbase Index Fund, though their e-Commerce platform currently has no plans to support ERC20 tokens.
Coinbase Custody is evaluating a set of assets to support deposits and withdrawals, noting that Coinbase Custody will support more assets than what is being offered for trading on their Coinbase and GDAX platforms. Like Coinbase itself, Coinbase Custody currently only supports Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. The same set of coins are also included in the Coinbase Index Fund, though any new ERC20 tokens that may eventually be added to the Index Fund will be added to the market cap-based weighting formula by Coinbase Asset Management.
GDAX – Coinbase’s trading platform – will hold off on supporting any new tokens until the firm has clarity from financial regulators such as the CFTC and SEC on how certain tokens will be classified. Coinbase proper only offers assets after they have been listed on GDAX, depending on a number of factors such as liquidity and price stability, so nothing will change on Coinbase until it has on GDAX. However, Coinbase is quick to point out that a listing on GDAX does not automatically mean it will be listed on Coinbase.
ERC20 is a standard used for smart contracts on the Ethereum blockchain. Since ERC20 tokens are on the Ethereum blockchain, Coinbase adding such support enables the ability for Coinbase to recover any ERC20 tokens accidentally sent to Coinbase Ethereum addresses.
Coinbase reiterates that despite the news to add ERC20 token support, no specific tokens are being considered at this time.