Coinbase announced Monday a new feature called USD Wallets, which allows users to store US dollar balances on Coinbase.
The new initiative offers instant buying and selling: once users deposit USD into their new wallet, they no longer have to wait for traditional blank transfers to clear before their orders complete. The company can process Bitcoin purchases on-demand using funds from users’ USD Wallet.
No credit card is required with this service. Previously, the only way one could instantly get Bitcoin on Coinbase was to enable instant buy, which required adding a credit card. USD Wallets let users transfer USD to their Coinbase account at their convenience. The company says users can then use the funds to buy Bitcoin instantly from Coinbase. If users do not spend the funds, or if they receive the USD proceeds of a Bitcoin sale into their USD Wallet, they can simply withdraw their funds to their connected bank account whenever they want. The company says it will not charge users to send funds to and from their USD Wallet via ACH (automated clearing house) bank transfer in the US.
The new service is available to Coinbase customers who have verified their identity in 16 supported US states: Arkansas, California, Delaware, Georgia, Idaho, Illinois, Indiana, Massachusetts, Missouri, Montana, New Mexico, Puerto Rico, South Carolina, Washington, Wisconsin, and West Virginia.
Coinbase is working on expanding access to this new service to residents in more states in the near future. If a user resides in a supported state, his or her USD Wallet will be automatically enabled; all he or she has to do is log in and make a deposit to start using the new wallet.
Image courtesy of Coinbase