Coinbase exchange has opened up DAI stablecoin trading on its retail platform. While DAI will be available for Coinbase customers across most jurisdictions, it won’t be available for users in New York.
DAI is a decentralised stablecoin on the Ethereum blockchain that is designed to maintain its value at ~ $1. However, unlike other stablecoins, DAI is not backed by a 1:1 ratio of US dollars held in a bank account. Instead, it is backed by collateral on the Maker (MKR) platform.
In recent times, DAI has struggled to hold on to its peg, with MKR token holders increasing the stability fee consistently, in an effort to maintain the DAI peg close to $1.
Coinbase Pro had listed DAI in December last year.
(Image credit: Coinbase blog)