Coinbase, one of the largest bitcoin brokers globally, has recently launched a new “instant and free” payments service for its users.
Dubbed Coinbase International, the new platform is encouraging users to send payments to both Coinbase and non-Coinbase using two cryptocurrencies, XRP and USDC, for the exchange.
As the website says, “there are zero fees for sending to other Coinbase users and a nominal on-chain network fee for sending outside of Coinbase.”
Coinbase says it chose XRP and USDC due to their faster processing and lower transaction fees, which makes them ideal for smaller international money transfers.
As the announcement noted, transfers through XRP will be settled within 3-5 seconds, while transfers made through USDC will take only 12-17 seconds.
Transfer within Coinbase is available on zero fees although Fees for on chain XRP and USDC transfers will be approximately USD 0.01. Furthermore, unlike bank transfers, there is no maximum limit for the XRP and USDC transfer.
Coinbase users will be able to use the service to transfer cryptocurrency in more than 100 countries, including India, the Philippines, and Mexico.
Coinbase International Not A Remittance Service
Although the new platform looks like blockchain-enabled remittances, Coinbase has mentioned that they are not offering a “money remittance service.”
Instead, the San Francisco based firm said it is only providing cross-border cryptocurrency transmission where the user can send the cryptocurrencies and receipt can convert the cryptocurrency into their local currency.
Upon receiving the funds, the individual can convert it to the local currency. Furthermore, in countries where Coinbase does not support the local currency, the person on the receiving side can suggest an exchange medium that supports exchanges from XRP/USDC to local currency.
The latest offering by Coinbase follows last week’s introduction of staking for Tezos (XTZ) on the Coinbase Custody Platform. It has also come in less than two months after the exchange first listed XRP for trading on its platforms.