Coinbase has published a blog post announcing that they will add ERC20 support to its products in the coming days. ERC20 is a framework for creating smart contracts – it lists six rules for tokens built on the Ethereum network that must be followed. ERC20 (Ethereum Request for Comment) tokens can vary from ICO tokens to certificates.
The unicorn startup offers five products: Coinbase Custody, GDAX, Coinbase Asset Management, Coinbase and Coinbase Commerce. Most of the ERC20 support will be added to Coinbase Custody, followed by GDAX and then Coinbase. However, Coinbase Commerce, which allows businesses to accept digital payments, won’t be receiving an update.
The announcement followed the rules set by the cryptocurrency exchange for including new digital assets by the “internal asset selection committee”. This recent statement means that ERC20 assets have passed legal and risk assessment as well as review. Now, the engineering team will work towards implementing and testing this strategy on the platform. The asset committee consists of eight members, excluding the CEO and co-founder Brian Armstrong.
Just yesterday, Dan Romero, General Manager of Coinbase, said that the company wants to add new assets but has to act carefully, considering the U.S. Securities and Exchange Commission (SEC) follows each and every single move. “The reality of the regulatory situation keeps us from going and doing that right away,” said Romero. He further added that if given more space and flexible regulations, the platform would definitely add more cryptocurrencies, “When we get to a point that we know which digital currencies and assets are securities, which ones are commodities, money or currency, it would be immensely helpful.”
Speaking about adding Ripple (XRP) to Coinbase, Romero said that the company won’t focus on what social media and news outlets like CNBC have to say; they will always prioritize customer feedback.