Coinbase’s competitive advantage has long been the relative security and simplicity it offered for investors looking to enter the digital asset market. However, as competition begins to mount, Coinbase is looking to ramp up its altcoin listing process to keep up with emerging players.
In an announcement published on Tuesday, Coinbase revealed that it has instituted a new process that will allow for the rapid listing of top altcoins based on compliance with local regulators. Essentially meaning that Coinbase is planning on rapid-fire listing coins and only making them available in regions that allow investors access.
Coinbase notes that this new listing policy comes as a result of pressure applied by one of the company’s largest institutional clients
“There are now thousands of digital assets of all types, including coins, tokens, forks, stablecoins and collectibles. One of our top customer requests is to add support for these new assets, and we have been determining how to do this in a secure and compliant way for those assets meeting our standards,” said Coinbase in the announcement.
Now, Coinbase has opened up its listing process to applications by blockchain projects and will take each application at no fee for the time being. Each application will be put up against the company’s digital asset framework for evaluation.
This listing revelation comes as major Coinbase competitors, including Circle, Abra and Gemini, have begun to expand their altcoin offerings.
Circle Invest, the retail cryptocurrency trading platform run by Goldman Sachs-backed Circle, recently announced the addition of four major altcoins, including EOS (EOS), 0x (ZRX), Stellar (XLM) and Qtum (QTUM).
Abra, an all-in-one cryptocurrency wallet and trading platform, recently announced that it has added support for Bitcoin Cash (BCH) as a means to fund user accounts. This came a week after Abra added three major altcoins, Cardano (ADA), TRON (TRX) and Basic Attention Token (BAT). Each altcoin listed on the Abra platform leverages a crypto-backed stablecoin model where investors are essentially trading derivatives on the price movement of each asset, similar to what is done on the Robinhood platform
Perhaps most significantly, the recent news that Gemini, the cryptocurrency exchange founded by the Winklevoss twins, will be listing Litecoin (LTC) and expanding into the United Kingdom. Both of these moves directly place the exchange in direct competition with Coinbase.
Today we’re announcing a new listing process that will allow us to rapidly add most digital assets that meets our standards and are compliant with local law, while providing our customers with the tools to discover, evaluate, trade, and use digital assets: https://t.co/6AteNMOnYr
— Coinbase (@coinbase) September 25, 2018
Coinbase has not given any indication which altcoins it will list next.
Photo: Jon Russell / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.