Coinbase Offers ‘Thousands of Tokens’ in Expanded Swap Service

Source: www.cryptopolitan.com

Coinbase, the largest crypto exchange in America, has added BNB chain (formerly known as Binance Smart Chain) and Avalanche to the list of supported networks on Coinbase wallet where coin holders can store and swap cryptocurrency.

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A Tuesday’s blog post from the cryptocurrency exchange states that the new functionality will give cryptocurrency investors access to “thousands of tokens” which are a “greater variety than most traditional centralized exchanges can offer.”

Source: Twitter.com

The new functionality brings the total number of supported networks on Coinbase to 4, that is, BNB Chain, Avalanche, Ethereum, and Polygon. Coinbase wallet users who need to trade on-chain can use the in-app decentralized exchange (DEX) provided by Coinbase on 4 networks. However, they have not introduced a token bridging feature.

With Coinbase wallet, users self-custody their cryptocurrency. Coinbase wallet also provides on-chain access as opposed to the features provided on Coinbase’s central platform.

Currently, there are only 173 tokens listed on the Coinbase crypto exchange. This is a small number compared to the thousands of cryptocurrency tokens that Coinbase wallet users can now access across the 4 networks. The cryptocurrency exchange also stated that “we’ll be making it possible to conduct swaps on an even greater variety of networks” in the coming months:

“Not only will trading expand, but we’re also planning to add support for network bridging, allowing you to seamlessly move tokens across multiple networks.”

Network bridging is the process of sending cryptocurrency tokens across networks without relying on a centralized exchange (CEX). Some of the common token bridges are Wormhole and Multichain.

Although initially accessible to a small number of users, Coinbase is also set to release its web3 wallet and browser for the mobile app. This will provide mobile traders with access to a wide ecosystem of decentralized cryptocurrency exchange platforms on supported networks other than that of Coinbase.