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 and the newly launched Coinbase Index Fund.
Coinbase currently offers only four cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The addition of ERC20 token support opens up the possibility of Coinbase adding one or more of the over 500 ERC20 tokens that exist on the market currently.
Coinbase itself only lists cryptocurrencies after they’ve been listed on GDAX, though Coinbase points out that just because an asset is offered on GDAX doesn’t necessarily determine if it’s offered via Coinbase as well. Coinbase cites liquidity and price range as factors that go into choosing an asset for listing.
On GDAX, Coinbase states that it’s waiting for further clarity on regulation and the effect it may 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 a pathway to recover any funds customers lost by sending ERC20 tokens incorrectly to an Ethereum address – a mistake that is surprisingly common.
Coinbase offers secure wallets for substantial value crypto holders through Coinbase Custody, which will also support ERC20 tokens. Coinbase Custody too is likely to offer additional asset storage beyond what is offered via GDAX or Coinbase proper.
Lastly, for Coinbase’s newly launched Coinbase Index Fund, the Coinbase Asset Management division will follow their previously announced approach, that any assets added to GDAX will automatically have its market cap applied to the Index Fund’s weighted average.
Coinbase took the opportunity to reiterate that despite the newly added support for ERC20 tokens, no specific asset support or listings are being announced at this time.