What does this mean for you? How will ERC20 Tokens being added to Coinbase help you?

While it is certainly welcome news, there is nothing really to report at this time. Coinbase simply has announced that they are looking into supporting ERC20 tokens across its Coinbase Products. It already offers support for ERC20 tokens via its Toshi App which available for ios and android. But coinbase is now exploring the possibility of supporting the Ethereum based tokens via Gdax, Coinbase, and Custody. They are still looking into the regulatory requirements of potential candidates. And they continue to follow their Protocol for Adding New Assets.

So if and when Coinbase launches support for ERC20 Tokens, what will happen?

Coinbase Custody — Looks like Institutional Investors have the most to gain. Coinbase Custody is a service that caters to investors with $10 Million or more to invest in their respective markets. They will likely receive the most access to supported ERC20 Tokens.

GDAX — Next up will be GDAX. The coinbase team still has to determine "regulatory clarity" before committing to ERC20 Assets to GDAX. But once they do it will help the safe recover of any ERC20's inadvertently sent to GDAX Ethereum addresses. And it will provide liquidity with another market for buyers and sellers of said tokens.

Coinbase Asset Management — If you are investing $10,000 - $5 Million or more into Coinbase's Index Fund, then anything added to GDAX will be included in the fund.

Coinbase — Just because a token is on GDAX, does not guarantee it will be available on Coinbase. This all goes back to Coinbase's method for approving additions. They evaluate liquidity, stability, and other metrics that will ultimately decide what is legal and what is available to the public.

In general, the announcement emphasizes the ability to recover any ERC20 assets accidentally sent to Coinbase Ethereum addresses. The author of this post can only assume Coinbase has been approached by costumers about this issue.

And bottom line, Nothing has been added at this time. They seem to be simply more transparent about their plans in the wake of backlash they may have received from recently adding BCash.

How does this help you as a Crypto Investor or Trader? Are you involved in Coinbase Custody? Are you involved in Coinbase Asset Management? Are you a casual Coinbase or Gdax customer? What ERC20 tokens do see being added in the future?