Coinbase to List Euro-backed Stablecoin amid Decreasing Volume
- Coinbase has announced the listing of an Euro-backed stablecoin called the Euro Coin (EUROC) and its trading will begin at 12 pm ET, Tuesday.
- Once sufficient supply of this asset is established, trading on the exchange’s EUROC-USD and EUROC-EUR trading pairs will launch in phases.
- The introduction of the stablecoin will have the “Experimental” asset label which will not impact the users’ ability to trade EUROC.
- Coinbase reported a 12% decline in transactions volume in Q4 2022 and a 34% increase in subscription and service revenues.
- The exchange has generated over $120 million of transaction revenue in January 2023.
The biggest crypto exchange in the United States, Coinbase, is set to list a stablecoin that will be backed by the Euro. This decision comes at a time when the exchange has reported a significant decline in trading volume along with decrease in revenue as well. Interestingly, the general interest in the crypto sector has gone downhill since the onset of the crypto bear market in 2022 and the collapse of multiple crypto firms.
According to an announcement made by Coinbase on the social media platform Twitter, the exchange will add support for Euro Coin (EUROC) on the Ethereum network (ERC-20 token). Furthermore, the trading of the crypto coin will begin on February 22 at 12:00 p.m., and as per a Twitter post, once sufficient supply of this asset is established, trading on the exchange’s EUROC-USD and EUROC-EUR trading pairs will launch in phases.
It is crucial to note that the support of the stablecoin will be available only in the regions where trading is supported, and there are some jurisdictions where the stablecoin might be subjected to restrictions.
Coinbase also confirmed that the introduction of the stablecoin will have the “Experimental” asset label, which will not impact the users’ ability to send, receive, buy, sell, and/or hold assets on the exchange but represents the fact that the asset is new and has low trading volume.
Coinbase Confirms Decrease in Trading Volume
Interestingly, this listing announcement comes at a time when Coinbase is facing a shortage of crypto trading volume due to the market downtrend and severe competition from other exchanges. It has been confirmed via a shareholder letter for Q4 2022 earnings of the exchange that the Nasdaq-listed company has beaten the revenue expectations of Wall Street analysts.
The crypto exchange reported a revenue of $605 million for the quarter, while Wall Street analysts predicted this number to be around $589 million. However, the transaction volume of the exchange has dropped 12% compared to the prior quarter, along with a 34% increase in subscription and service revenues.
Talking about the Q1 2023 outlook, Coinbase noted that so far, the total crypto market cap is up 40% year-to-date through February 17, while crypto asset volatility is 5% higher over this same time period compared to Q4 2022. The exchange confirmed that it had generated over $120 million in transaction revenue in January 2023.
“We caution investors not to extrapolate these results forward. Last year’s experience reminds us how quickly the market can evolve and we are mindful that industry dynamics – across multiple dimensions – remain in flux,” stated the exchange in the shareholder letter.
As reported earlier by BitcoinWisdom, Coinbase announced that its NFT platform will no longer support new creator Drops while adding that it is now focusing on “other features and tools” within the NFT platform to help its creators and users. However, there are no plans to shut down the platform.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
