On March 28, the US leading exchange Coinbase has announced expansion into cross-border payments. Now, its customers are able to transfer their funds to any user with a Coinbase account around the world using XRP or USDC, without any fee. As Coinbase has reported, users can now not only send and receive money instantly but also convert them into local currency.
Coinbase’s announcement states:
“By using cryptocurrencies that are optimized for cross-border transmission, you can send and receive money virtually instantly by sending those cryptocurrencies and having the recipient convert them into local currency. There’s zero fee for sending to other Coinbase users and a nominal on-chain network fee for sending outside of Coinbase.”
As we reported earlier, XRP was added to the services provided by the exchange on February 27. Listed during four different stages, the XRP/fiat pairs are now available across various countries, including the USA (except NY), the UK, supported European Union member nations, Canada, Singapore, and Australia.
On its website, Coinbase points out that the newly added service ‘is not a money remittance; rather, it is a cryptocurrency transaction with conversion into local currency after receipt.’
Commenting on the initiative, Coinbase’s representative said:
“It’s primarily designed as an educational resource for customers to learn about the benefits of using crypto for cross-border payments.”
Further, the company states:
“In countries where Coinbase does not support the local currency, recipients need to transfer their XRP/USDC to an exchange that supports exchanges from XRP/USDC to local currency.”
To send money globally with Coinbase, you have to sign in to your Coinbase account, confirm that your recipient can convert XRP or USDC into local currency, then convert your desired funds into one of the currencies. After accessing your XRP or USDC wallet and selecting send, you enter the amount you’d like to send and the target wallet or email address.
Coinbase has also explained why the service requires no fees:
“XRP and USDC transfers are processed on public blockchains and are global in nature. This is in contrast to the movement of traditional currency, which requires institutions to have bilateral agreements with multiple intermediaries, adding costs to money transfers. A blockchain transaction typically costs a few cents or less, whereas a traditional wire costs tens of dollars.”
Coinbase’s Recent Updates
Last month, Coinbase has made several important developments, including a service linking user accounts on its main platform to its Coinbase Wallet app. To link their Coinbase.com accounts to the wallet, users should click Connect Now in the notification, or select ‘Connect to Coinbase’ from the Settings menu at any time. When linked, users can transfer funds at any time from the Settings menu. Unlinking is provided as well.
The company has also established a new market structure for the exchange’s professional trading platform, Coinbase Pro. Aiming to increase liquidity, enhance price discovery and ensure smoother price movements, the improved structure has higher fees.
Moreover, Coinbase launched staking support for Tezos, making it the exchange’s first staking asset
— Coinbase (@coinbase) April 2, 2019
As Coinbase said, this move is a step from helping their customers store their assets to enabling them to actively, safely and easily participate in crypto networks.