Coinbase has announced their interest in exploring the addition of several new cryptocurrencies to their exchange including Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX).
“We are making this announcement internally at Coinbase and to the public at the same time to remain transparent with our customers about support for future assets,” Coinbase stated.
Unlike the ongoing process of adding Ethereum Classic, these assets will require additional exploratory work and Coinbase cannot guarantee they will be listed for trading.
Furthermore, the listing process may result in some of these assets being listed solely for customers to buy and sell, without the ability to send or receive using a local wallet.
Coinbase may also only enable certain ways to interact with these assets through our site, such as supporting only deposits and withdrawals from transparent Zcash addresses.
Finally, some of these assets may be offered in other jurisdictions prior to being listed in the US.
As part of the exploratory process, customers may see public-facing APIs and other signs that the company is conducting engineering work to support these assets.
“While we cannot commit to when or whether these assets will become available at this time, we will provide updates to our customers about the process and what they can expect via the Coinbase blog and Twitter.
Going forward, you should expect that we will make similar announcements about exploring the addition of multiple assets,” the company stated.
Some of these assets may become available everywhere, while others may only be supported in specific jurisdictions.
Frequently Asked Questions
Q: Can you tell me more about these assets?
You can find information on the assets being explored at their respective websites:
In evaluating these assets for exploration, we relied as much as possible on the criteria in our published Digital Asset Framework, but found that many of the criteria required communication with external parties to fully evaluate. Regardless, here’s what we found notable about each of these assets.
The Cardano protocol was created by Charles Hoskinson, one of the co-founders of Ethereum. Cardano’s Bitcoin-like Settlement Layer (CSL) mainnet is live and it has a functional wallet for its built-in ADA cryptocurrency. It has also taken a different technical direction from other blockchains on several axes, like its Ouroboros proof-of-stake algorithm, its use of Haskell, and its focus on formal verification. While Cardano’s Computation Layer (CCL) is not yet live, the project has published long-term roadmaps, has shipped working software, and appears to have a growing community.
Basic Attention Token (BAT)
Stellar Lumens (XLM)
Stellar is an open-source protocol for value exchange developed by Stanford CS professor David Mazieres, Rust language author Graydon Hoare, and Jed McCaleb. Lumens (XLM) are the native asset of the Stellar network. Stellar’s consensus protocol is different from proof-of-work in that it allows and requires individual nodes to choose the set of other nodes they trust as a group (a “quorum slice”) to give them accurate information about the state of the Stellar network. Stellar allows for the creation of anchors that can issue assets, use bridge servers to interface with existing banks, and follow Stellar’s compliance protocol. Initially funded by Stripe, Stellar’s board members include Khosla Ventures partner Keith Rabois, Stripe cofounder Patrick Collison, WordPress founder Matt Mullenweg, YCombinator President Sam Altman, MIT DCI head Joi Ito, and AngelList founder Naval Ravikant.
Zcash is a cryptocurrency which uses recent advances in cryptography to allow users to protect the privacy of transactions at their discretion. The distinction between Zcash’s “transparent” and “shielded” transactions is analogous to the distinction between unencrypted HTTP and encrypted HTTPS. In both cases, the unencrypted/transparent version of the protocol allows third parties to see metadata associated with the communication or transaction, while the encrypted/shielded version protects this information. The Zcash protocol has been live since 2016 and the development team has published technical improvements that may reduce the memory consumption associated with transaction privacy by 98%.
Q: What is the status on adding Ethereum Classic (ETC)?
We are underway with engineering work to add Ethereum Classic (ETC), and it is proceeding as planned. We are making this announcement so that we can begin the next phase of work to explore adding more assets to the platform.
Q: What is the status on adding ERC-20 assets?
We announced our general intention to support ERC20 assets in March. The BAT and ZRX assets are the first specific ERC20-based assets we are exploring for addition to the platform.
Q: How will you decide what countries to launch these assets in?
Regional support will depend on a case-by-case analysis that looks to legal, compliance, and other factors that are relevant to that jurisdiction. In some cases, you should expect certain assets to be available in other jurisdictions before coming to the US.
Q: Does this mean Coinbase has deemed these assets to not be securities under a particular country’s laws?
No. That legal analysis is ongoing and will vary by jurisdiction. As we only plan to launch assets which are compliant with local law, some assets may only be available in specific jurisdictions.
Q: Why is this just an exploration, rather than an announcement that Coinbase is adding these assets?
In an effort to be as open and transparent as possible, we’re announcing that our teams are exploring the feasibility of supporting these assets. This is consistent with our process for adding new assets. But unlike Ethereum Classic, which is technically very similar to Ethereum, these assets will require additional exploratory work that may result in one or more of them being listed only in specific jurisdictions, or not at all.
Q: Which Coinbase platforms will support these assets?
We have not made this determination at this time, but we hope to offer support for each asset across the widest variety of products in each jurisdiction.
Social messaging app Kik has announced they will be utilizing both the Ethereum blockchain and the Stellar platform for their “kin” token, which raised $98 million during their initial coin offering (ICO) in September.
“Kik will be one of the first mainstream projects that uses cryptocurrencies in a meaningful way. It will bring millions more people to this technology and we are super excited to be the platform this will be done on” said Stellar founder, Jed McCaleb.
The company will utilizing the Ethereum blockchain, where the tokens were initially launched, for liquidity, and Stellar for transactions.
In December, Kik CEO Ted Livingston stated Ethereum was “the dial-up era of blockchain”, but the company has chosen to stick with the second largest blockchain by market cap.
Utilizing an in-progress technology called atomic swaps, the cryptocurrency will be able to traded across the two blockchains.
“Creating a bi-directional blockchain with stellar will drive mass adoption of kin by providing faster confirmation times, low transaction fees and scalability,” said Livingston.
The social messaging app had 10,000 customers in 117 countries participate in its ICO and is currently ranked number 15 on the Apple App Store in the social networking category.
“This new innovation and collaboration represents a significant milestone for Stellar as well as the financial technology industry as a whole,” said Jed McCaleb, co-founder of Stellar.
“For the first time, public blockchain technology is being used in production to facilitate cross-border payments in multiple integrated currency corridors. Currently, cross-border payments take up to several days to clear. This new implementation is poised to affect a profound change in the South Pacific region, and once fully scaled by IBM and its banking partners, could potentially change the way money is moved around the world, helping to improve existing international transactions and advancing financial inclusion in developing nations.”
This solution will help financial institutions and consumers eliminate inefficiencies and frustrations in current cross-border payment systems, including high fees, slow processing, error-prone transactions, and inefficient capital utilization.
Stellar’s technology serves as the core backbone of this cross-border payments solution.
The Stellar network enables frictionless, scalable, and virtually-free cross-border payment transactions, and has been proven to be able to securely process over 1,000 transactions per second with a billion unique user accounts.
Having grown up in Oceania, Robert Bell, founder of KlickEx Group, has first-hand experience with the frustrations and inefficiencies of sending payments through underdeveloped payment corridors.
He built KlickEx to meet critical remittance and foreign exchange needs in the region.
Now, he sees promise in Stellar’s blockchain technology to revolutionize the remittance business by dramatically improving the cost and speed of transaction clearing, settlement, and compliance.
This cross-border payments solution is already processing live transactions in 12 currency corridors across the Pacific Islands and Australia, New Zealand and the United Kingdom.
IBM has convened an initial group of diverse banking leaders as part of the development and deployment process, including Banco Bilbao Vizcaya Argentaria, Bank Danamon Indonesia, Bank Mandiri, Bank Negara Indonesia, Bank Permata, Bank Rakyat Indonesia, Kasikornbank Thailand, Mizuho Financial Group, National Australia Bank, Rizal Commercial Banking Corp. (RCBC) Philippines, Sumitomo Mitsui Financial Group, TD Bank, Wizdraw (HK) of WorldCom Finance, and other financial institutions.
Stellar is excited to collaborate with IBM and KlickEx on the development and global implementation of this revolutionary cross-border payments solution.