Coinbase had announced in late September that it is looking to quickly add new cryptocurrencies that meet its standards and meet local law compliance. The exchange recently started supporting Ethereum Classic, and now there’s talk that it could list Ripple as well. The exchange has justannounced that Coinbase Custody, its branch providing custodian service for institutional investors, is now adding support for Ripple (XRP).
Coinbase recently announced that its customers in supported jurisdictions can send, receive, buy, and sell the USD Coin stablecoin (USDC) on its website and mobile applications. This marks Coinbase first entry into stablecoins, which have a fundamental difference as compared to other cryptocurrencies. A USDC is pegged to the price of a single US dollar (USD). Coinbase explains that one USDC is represented by one USD on the Ethereum blockchain.
The other 2% of customer funds, held online, are covered in the event of a breach of Coinbase's online storage. Also, Coinbase holds all customer fiat currency in custodial bank accounts, on behalf of customers. So, if you have fiat currency in Coinbase, in a USD wallet, it is covered by FDIC insurance up to $250,000 (just like a "regular" bank). This protects customer assets (so long as they have been converted to fiat currency) even in the event of Coinbase becoming insolvent.
Ripple positions itself as a complement to, rather than a competitor with, Bitcoin - the site has a page dedicated to Ripple for bitcoiners. Ripple is a distributed network which means transactions occur immediately across the network - and as it is peer to peer - the network is resilient to systemic risk. Ripples aren't mined - unlike bitcoin and its peers - but each transaction destroys a small amount of XRP which adds a deflationary measure into the system.