• The digital assets that will be hosted are USDC, MATIC, SOL and ETH
• The crypto exchange platform claims that the transmission of cryptocurrencies on the Ethereum network has become expensive
• High costs of transmission have therefore priced out millions of potential users

Coinbase, through their Twitter handle, announced that users would soon be able to send and receive USD coins and Ethereum on a polygon.

The polygon integration will enable users to send and receive these assets under an L2 or sidechain.

The digital assets that will be hosted on this sidechain are USDC, MATIC, SOL and Ethereum.

Coinbase promises to introduce support for other networks and assure users of a Solana-Coinbase integration.

Solving the Problem

The company said that they are making it faster, easier and cheaper for users to access the web3 space. The crypto exchange platform claims that the transmission of cryptocurrencies on the Ethereum network has become expensive.

High costs of transmission have therefore priced out millions of potential users from the platform. With the increase in popularity of less expensive networks such as Solana and Polygon, Coinbase believes that the integration was imminent.

The Company also added it would solve the digital wallets problem in Solana and Polygon. Financing wallets on these two networks is challenging and time-consuming hence Coinbase decided to chip in and figure out a solution.

Through this integration, users can now convert their fiat currencies to cryptocurrencies and fund their digital wallets. Coinbase aims at reducing the time, effort and costs that are incurred by users in the networks.

Multichain asset compatibility will enable more superficial deposits and withdrawals across the three networks. Trading and settlement will occur in the same order regardless of the chain used by the users.

Coinbase market share or Competition?

Recently, Coinbase announced that it would be launching the Coinbase Advanced Trade. The technology will combine both the features and pricing of the Coinbase Pro to create a new Coinbase account.

The merged account will allow customers the option of having an improved trading experience. The aim is to boost the customer experience whereby users need not maintain two different apps and balances.

The crypto exchange platform has been launching a series of upgrades in order to tighten the competition among exchanges. With the launch of the Coinbase Derivatives Exchange platform for futures trading and Polygon integration, the company is leading the way in the crypto world.

Native stable coins will also be supported in the Coinbase Polygon and Solana integrated network. MATIC and SOL, which are the native assets of Polygon and Solana, can now be traded in the exchange at a cheaper cost.

High costs on the Ethereum network are driving users towards cheaper and user-friendly networks. Users are keen on an exchange platform that is easier to use, cheaper and supports a self-custodial wallet.

This move will boost the popularity and growth of Coinbase. Although there are claims of a recession in the coming months, the exchange is expanding its investment portfolio to cushion itself. The recent updates will bring in more traffic to the exchange and ensure that users are well served.