Coinbase is listing two new non-dollar stablecoins, based on the local currencies of Singapore and Australia. The exchange hopes to use these to encourage onboarding at a global scale.
Coinbase contracted a consumer sentiment survey in these countries, which claims that 70% of local consumers want non-dollar stablecoins. If this experiment succeeds, it could reveal a massive new market.
Coinbase’s Stablecoin Experiment
Coinbase has been expanding its business interests in recent months, making new AI advances and offering products with deeper TradFi integration.
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Part of that expansion has involved novel stablecoin features, and Coinbase is continuing the trend with two new asset listings.
Although dollar-based stablecoins have a huge international presence, assets based on other fiat currencies are growing in prominence too. AUDD is based on the Australian dollar, while XGSD is based on Singapore’s currency.
By listing these stablecoins based on two local currencies, Coinbase hopes to anticipate a broader trend.
Specifically, the firm’s press release details a coherent expansion strategy. It claims that these stablecoins are “integral to Coinbase’s mission” of onboarding new users, and that catering to local markets can encourage new adoption.
Local Currency Stablecoins: An Untapped Market?
Apparently, Coinbase also contracted Ipsos, a respected polling firm, to assess consumer sentiment about these stablecoins. In Singapore and Australia, 70% of crypto-owning survey respondents claimed that they’d be interested in a local currency stablecoin.
Both Singapore and Australia are important sectors for stablecoin expansion, and Coinbase has already established partnerships in the latter nation. Starting today, Coinbase users in these countries will be able to seamlessly exchange local currencies for these new assets.
AUDD and XGSD are both fully backed by fiat collateral, intended for use by institutional clients and retail traders alike. XGSD has already complied in advance with Singapore’s Single Currency Stablecoin regulatory framework, even though it hasn’t been implemented yet.
As the stablecoin market explodes worldwide, Coinbase is conducting an important experiment. The survey data claims that customers are very interested in non-dollar stablecoins.
If these assets’ market performance matches these sentiments, it could trigger a boom in new local currency tokens.
Source: https://beincrypto.com/coinbase-non-dollar-stablecoins-singapore-australia/
