Crypto Exchange Coinbase Asks Users to Switch USDT for USDC

Coinbase highlights questions about Tether reserves in campaign to get users over to USDC

AccessTimeIconDec 9, 2022 at 5:13 a.m. UTC
Updated May 9, 2023 at 4:04 a.m. UTC

Coinbase is waiving the conversion fees for users who wish to switch to a "trusted stablecoin" in a new campaign that highlights the quality of reserves that back Circle-owned USD coin (USDC).

"The events of the past few weeks have put some stablecoins to the test and we’ve seen a flight to safety," Coinbase said in blog post published Friday morning Asia time. "We believe that USD coin (USDC) is a trusted and reputable stablecoin."

Coinbase said starting today it's waiving fees for global retail customers to convert tether (USDT) to USDC.

Coinbase is a co-founder of USDC.

On-chain data shows that USDT is the third-most widely traded digital asset on Coinbase, representing 5% of the volume on the exchange, where it currently trades for 99 cents.

Days after the FTX collapse, USDT was knocked off its peg and traded as low as 93 cents. The majority of trading pairs on exchanges have returned to $1, though CoinGecko data shows that USDT continues to trade at 99 cents on some pairs at Binance.

In late September, the issuing company, Tether, was ordered by a federal court judge in New York to produce financial records relating to the backing of USDT. This is separate from the lawsuit before the New York Supreme Court (where CoinDesk is a party to the proceedings) that's asking for the New York Attorney General to release documents it gathered in its investigation into Tether’s reserves.

Recently, Binance has stopped supporting USDC, auto-converting customer holdings into its own stablecoin BUSD.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Read more about