Leading exchange Coinbase has announced the launch of Zcash (ZEC) on its Coinbase Pro platform. Customers in the US (except New York), UK, European Union, Canada, Australia and Singapore will be able to start trading Zcash on the exchange after sufficient liquidity is established. More geographies will be added later.
Zcash becomes the first privacy coin to be added on Coinbase. The exchange has also clarified that they will support deposits from both transparent and encrypted ZEC addresses but withdrawals will be supported only to transparent/unencrypted addresses. This may possibly be to address regulatory concerns around privacy coins such as Zcash. Coinbase also said that they may add withdrawal support to encrypted addresses in locations where it is compliant with the local regulations.
As always, coins launched on Coinbase are not immediately made available on their retail platform - Coinbase.com. A separate announcement for Zcash trading on Coinbase.com will be made later.
In keeping with the guidelines for adding new digital assets, Coinbase will follow four stages leading to the complete launch of ZEC. Each stage will have its own new order book. If any order book does not meet their trading guidelines, they may keep the order book in one stage for a longer period of time or may suspend trading. Coinbase Pro will keep users updated through their Twitter account. The stages are:
- Transfer-only: This stage has already begun. In the transfer-only phase, users can deposit ZEC to their Coinbase Pro account but cannot place orders. The order books will stay in this mode for at least 12 hours.
- Post-only: In the second stage, customers can post limit orders which will last for a minute but there will be no matches. Notably, this stage has been shortened to boost market health during launch.
- Limit-only: Order books will be in the limit-only mode for at least 10 minutes. In this stage, limit orders will start getting their matches. However, customers will still not be able to submit market orders.
- Full-trading: In the last stage, customers can use full trading services including limit, market and stop orders.
Needless to add, the price of Zcash jumped following this announcement. ZEC was trading at $93, up 12% from $82 after the announcement. It has since then lost some of the 'Coinbase Gains' and is now trading at $83.92.
Coinbase stressed that this move was a result of heavy demand from its users for adding more cryptocurrencies on its platform. Recently, Coinbase added Ethereum Classic, 0x, Basic Attention Token and USDC in a very short span of time. More cryptocurrencies will be added to the exchange soon!