Digital currency exchange giant Coinbase announced via their official blog that they’ll soon be supporting Ethereum-based ERC20 tokens across their various platforms, including GDAX as well as the newly launched Coinbase Index Fund.
Coinbase currently offers only four cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. By adding ERC20 token support unwraps the possibility of Coinbase adding one or more of the over 500 ERC20 tokens which can be found on the market currently.
Coinbase itself only lists cryptocurrencies after they’ve been for auction on GDAX, though Coinbase explains that just because a property is offered on GDAX doesn’t necessarily analyse if it’s offered via Coinbase as well. Coinbase cites liquidity and cost range as factors which go into choosing an asset for listing.
On GDAX, Coinbase states that it’s waiting for further clarity on regulation additionally, the effect this could have on the classification of specific assets (ie. a security, commodity, or currency).
Both Coinbase and GDAX supporting ERC20 tokens means there will soon be considered pathway to extract any funds customers lost by sending ERC20 tokens incorrectly to the Ethereum address – a slip-up that is surprisingly common.
Coinbase offers secure wallets for substantial value crypto holders through Coinbase Custody, that is certain to also support ERC20 tokens. Coinbase Custody too will offer additional asset storage beyond just what is offered via GDAX or Coinbase proper.
Lastly, for Coinbase’s newly launched Coinbase Index Fund, the Coinbase Asset Management division will track their previously announced approach, that any assets combined with GDAX will automatically have its market cap put on the Index Fund’s weighted average.
Coinbase took the cabability to reiterate that inspite of the newly added support for ERC20 tokens, no specific asset support or listings are increasingly being announced right this moment.