Cryptocurrencies

Coinbase Vowed Token’s All-Cash Backing; That’s Not True

  • Some assets of second-largest stablecoin carry default risk
  • Coinbase says users can redeem USDC dollar-for-dollar in cash
Photographer: Michael Nagle/Bloomberg
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For months, a visitor to the website of Coinbase Global Inc., the largest U.S. cryptocurrency exchange, would see that the company offered a stablecoin called USD Coin with a simple premise: For every dollar offered to investors, there was $1 “in a bank account” to back it.