Coinbase is now proud to have more than $90B in cryptocurrency assets on its platform in a newly released annual report.
The report, which is tailored to Coinbase’s institutional clients, was released last Friday afternoon and tried to clarify the company’s place in the even larger crypto ecosystem.
Topics like the state of Bitcoin in 2020 and Ethereum, DeFi, crypto regulation, and “cryptodollars,” also known as stablecoins – these are cryptocurrencies that aim to eliminate volatility with backing from fiat money.
Coinbase, along with payments firm Circle, has launched the stablecoin USD Coin or USDC way back in 2018. The idea is that the price is always $1.00 and that there is a real dollar for every USDC issued. USDC is still far behind Tether (USDT) regarding market capitalization and trading volume, although the growth of USDC is now outpacing the market leader.
“The most common use case we see for crypto dollars is efficiently moving funds between exchanges,” stated the report. “Increasingly, we also see private financings, e.g. venture investments in start-ups and new crypto assets, being funded with USDC by more crypto-savvy investors. Finally, we see a growing number of crypto users leveraging cryptodollars to engage with DeFi protocols.”
The market cap of USDC began in 2020 just below $500M; it’s since risen to over $5.4B.
The report also detailed Coinbase’s relationship with many large institutional clients, like MicroStrategy and One River Asset Management. Microstrategy, operated by Bitcoin evangelist Michael Saylor, has purchased a massive 70,784 bitcoins in deals brokered by Coinbase it amounts to over $2.3B.
MicroStrategy’s significant investment may have played a role in the Bitcoin bull market this past fall; ever since the company’s first purchase in August, other large institutional players like Square and PayPal have announced support for crypto in their payment products.
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