COBINHOOD, the zero-trading-fee exchange, is announcing the addition of four stablescoins available beginning tomorrow on its exchange: the Gemini Dollar (GUSD), MakerDao (DAI), Paxos Standard Token (PAX) and TrueUSD (TUSD). Each of these stablecoins have a unique set of features that achieve same end result: increased market stability.
Standard cryptocurrencies can be highly volatile, often depreciating or appreciating in value 20-30 percent in a matter of hours. Stablecoins exist to remove this market unpredictability as these types of tokens are pegged to fiat currency like USD, EUR, CNY or JPY and sometimes even gold or oil. The GUSD, DAI, PAX and TUSD stablecoins will be available on the COBINHOOD exchange for deposit or withdrawal and trading for all users.
The distinctive characteristics of each added token include:
- Gemini Dollar (GUSD): The Gemini Dollar (GUSD) is the world’s first regulated stablecoin. It was built on the Ethereum network according to the ERC20 token standard and issued by Gemini, a New York trust company. GUSD is strictly pegged 1:1 to the U.S. dollar and backed by the combined strength of blockchain technology and New York State Department of Financial Services (NYDFS) regulation. Trading pairs available on the COBINHOOD exchange include: GUSD/USDT and GUSD/BTC.
- MakerDao (DAI): MakerDao (DAI) is an ERC20 stablecoin pegged to the U.S. dollar that is not backed by any centralized authority. Maker, the company behind the project, uses a smart contract platform, CDPs, incentivized external actors and autonomous feedback mechanisms to stabilize its value. Trading pairs available on the COBINHOOD exchange include: DAI/USDT and DAI/ETH.
- The Paxos Standard Token (PAX): The Paxos Standard Token (PAX) is an ERC20 token built on the Ethereum blockchain that is fully collateralized on a 1:1 basis with U.S. dollar. This stablecoin, issued by the Paxos Trust Company, is approved and regulated by the New York StateDepartment of Financial Services (NYDFS). Trading pairs available on the COBINHOOD exchange include: PAX/USDT and PAX/BTC.
- TrueUSD (TUSD): TrueUSD (TUSD) is an ERC20 stablecoin backed by the U.S. dollar that is fully legally secured and verified by third-party attestations. Every TUSD is 100 percent collateralized by USD and held in professional trust firms and banks. Trading pairs available on the COBINHOOD exchange include: TUSD/USDT and TUSD/BTC
“The biggest flaw in the market right now is uncontrolled fluctuations in the value of many customary cryptocurrencies. We are increasing the presence of stablecoins on the COBINHOOD exchange so the community understands that their voices have been heard and stability is being made possible,” says Co-Founder Wei-Ning Huang. “Our mission is to make the space more approachable for anyone who wants to participate.”