Privacy-oriented Zcash (ZEC) will be supported by Coinbase Pro, which is an international cryptoasset exchange more suited for professional or more experienced traders. As announced via a Coinbase blog: “At 10am PT on Thursday, November 29, we will begin accepting inbound transfers of Zcash (ZEC) on Coinbase Pro.”
The exchange will also accept deposits “for at least 12 hours prior to enabling trading.” After accumulating “sufficient liquidity”, trading for ZEC/Tether (USDC) will begin.
At first, ZEC trading will be offered to Coinbase Pro users in the UK, Canada, Australia, Singapore, and European Union. US-based traders may also trade ZEC on Coinbase Pro, however, New York residents will not be able to..
Coinbase Pro’s management is planning to offer ZEC trading pairs in “additional jurisdictions” at some later point. Zcash (ZEC) is a digital currency that uses “recent advances in cryptography to allow users to protect the privacy of transactions at their discretion”, the Coinbase Blog explained.
As noted in the announcement,
“The distinction between Zcash’s ‘transparent’ and ‘shielded’ transactions is analogous to the distinction between unencrypted HTTP and encrypted HTTPS. In both cases, the unencrypted/transparent version of the protocol allows third parties to see metadata associated with the communication or transaction, while the encrypted/shielded version protects this information.”
Deposits from transparent and shielded addresses will be permitted at first on Coinbase Pro. However, only withdrawals to transparent addresses will be allowed.
Later on, Coinbase Pro’s management may consider “withdrawals to shielded addresses” in “locations where it complies with local laws”, the announcement noted.
At present, ZEC is not supported on Coinbase.com or through the company’s mobile apps. Should the San Francisco-based fintech firm decide to list ZEC on Coinbase, it will let users know via a separate announcement.
4 Stages of the ZEC Launch
“If at any point one of the new order books does not meet our assessment for a healthy and orderly market, we may keep the book in one state for a longer period of time, or suspend trading as per our Trading Rules”, the blog stated.
Coinbase Pro’s official Twitter account will be issuing updates as the ZEC trading process moves through the following four stages:
- “Transfer-only. Starting at 10am PT on Thursday, November 29, customers will be able to transfer ZEC into their Coinbase Pro account. Customers will not yet be able to place orders and no orders will be filled on these order books. Order books will be in transfer-only mode for at least 12 hours.”
- “Post-only. In the second stage, customers can post limit orders but there will be no matches (completed orders). Order books will be in post-only mode for a minimum of one minute. This market state has been shortened to improve market health during launch.”
- “Limit-only. In the third stage, limit orders will start matching but customers are unable to submit market orders. Order books will be in limit-only mode for a minimum of ten minutes.”
- “Full trading. In the final stage, full trading services will be available, including limit, market, and stop orders.