Odaily Frontline | Coinbase 2020 Year-end Report: Platform Assets Exceeded $90 Billion
This article comes fromDecrypt & Coinbase, original author: Will Gottsegen
Odaily Translator | Nian Yin Si Tang
Summary:
This article comes from
, original author: Will Gottsegen
Odaily Translator | Nian Yin Si Tang
Summary:Report- Coinbase recently released a 2020 year-end report.
- The company claims that its exchange holds more than $90 billion worth of crypto assets.
- Coinbase also detailed its relationship with tech firm Microstrategy, which Coinbase helped buy large amounts of bitcoin.
Zhong said that as of December 31, 2020, the value of cryptocurrencies on its platform has now exceeded $90 billion, with more than 43 million registered users.
bitcoin
Published Friday afternoon, the report to Coinbase’s institutional clients sought to shed light on the company’s position in the broader crypto ecosystem.
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Ethereum
bitcoin
Bitcoin has moved significantly higher in 2020. Since January 1, BTC/USD has achieved a return of 321%, broke out of the trading range after 2017, and ended 2020 at $29,185, which has many investors believing that Bitcoin is here to stay in the long run.
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Ethereum
The reasons we hear most from clients about holding Ethereum are: i) its potential to grow as a store of value, and ii) its status as a digital commodity that powers transactions on its network.
While our institutional clients primarily bought Bitcoin in 2020, they also increasingly took positions in Ethereum, the second-largest crypto asset by market capitalization. Ethereum has done well against the U.S. dollar in 2020, outpacing bitcoin, up 487% for the year to $745.
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The crypto dollar continues to grow in 2020. Tether and USDC are still the main assets, Tether's market value increased from $4.75 billion to $21.4 billion (including USDT issued on Ethereum, Omni and Tron), a 350% increase, USDC increased from $518 million to $3.91 billion, An increase of 655%.
Supervision
At the same time, according to Decrypt reports, Coinbase and the payment company Circle launched the stable currency USD Coin (USDC) in 2018. The idea is that the price will always be $1.00 and backed by a real $1 for every USDC issued. USDC is still far behind Tether (USDT) in terms of market capitalization and trading volume, although USDC is currently growing faster than USDT.
USDC’s market cap started 2020 below $500 million. That figure has since surpassed $5.4 billion.
DeFi
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Supervision
The regulatory landscape in the crypto space is still evolving. Market activity has increased in 2020, particularly from U.S. federal regulators, including the Treasury Department’s Office of the Comptroller of the Currency (OCC) and the Financial Crimes Enforcement Network (FinCEN), the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission ( CFTC), and the U.S. Department of Justice (DOJ).
While the response of institutional market participants to specific regulations remains mixed, there is broad industry acceptance of the 2020 move to develop more precise guidelines on how crypto businesses can operate legally and fairly. Coinbase and others already provide institutional clients with secure, regulated crypto markets. Additional guidelines from regulators further promote trust by clarifying the legality of various actions and the status of specific assets.
