Boom Bitcoin Drives Coinbase Assets on A Platform Above $ 90 Billion

In short

  • Coinbase has shared a year-end public report for 2020.
  • The company claims to have $ 90 billion on its exchange, across a range of cryptocurrencies.
  • Coinbase also details its relationship with Microstrategy, the technology company it has helped buy huge quantities of Bitcoin.

In a newly released end of year report, Coinbase has said it now has over $ 90 billion in cryptocurrencies on its platform.

The report, aimed at Coinbase’s founding clients, was released Friday afternoon, and seeks to clarify the company’s place in the broader crypto ecosystem.

Topics include the state of Bitcoin in 2020, as well as Ethereum, DeFi, crypto regulation, and otherwise known as “cryptodollars,” fixedcoins– These are cryptocurrencies that seek to eliminate backed volatility from fiat currencies.

Coinbase, along with the payments company Circle, launched the stablecoin USD Coin (USDC) back in 2018. The idea is that the price is always $ 1.00, and that there is one real dollar for every USDC issued. USDC is still a distant second to Tether (USDT) in terms of market capitalization and trading volume, although USDC’s growth currently outweighs the market leader.

“The most common use case we see for crypto dollars is to move money between exchanges efficiently,” the report read. “Increasingly, we are also seeing private money, eg venture investments in start-ups and new crypto assets, being funded with USDC by more crypto-savvy investors. Finally, we are seeing an increasing number of crypto users leveraging cryptodollars to engage with them DeFi Protocols. ”

The USDC 2020 market cap started below $ 500 million; since then it has risen to over $ 5.4 billion.

The report also details Coinbase’s relationship with several large institutional clients, such as MicroStrategy and One River Asset Management. Microstrategy, led by Bitcoin evangelist Michael Saylor buy whopping 70,784 bitcoins at brokered deals from Coinbase—This is over $ 2.3 billion.

Microstrategy’s huge investment may have played a role in Bitcoin’s bull market this fall; since the company’s first purchase in August, other major institutional players like Square and PayPal have announced support for crypto in their payments products.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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