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
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.




Disclosure

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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


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 consensus.coindesk.com to register and buy your pass now.


Read more about