Coinbase asks its users to switch from USDT to USDC

At a time of purification on the crypto markets and more specifically on that of stablecoins, Coinbase has made its choice.

Tether does not reassure

Recently, an official from Tether, the company that issues USDT was interviewed about proof of reserves. According to observers, he was not reassuring on the issue, casting more doubt on the said reservations. However, the industry is currently at a pivotal stage where the proof of the reserve guarantees the confidence of investors. The vacuity of the manager’s responses prompted a torrent of criticism regarding transparency at Tether. Faced with the situation, the Coinbase exchange recommended its users to switch from USDT to USDC. It was in a blog post whose title is: ”Move to the most trusted digital dollar”.

The purpose of the Steps is to protect its investors and its platform against possible panic withdrawals. It should also be said that Circle, the company that issues USDC, recently released proof of strong reserves.

The blog post

“USDC is 100% backed by cash and short-term US Treasury bonds, held in US-regulated financial institutions. It is still redeemable 1:1 in US dollars (…) In reference to the disastrous events of this year, we believe that stability and trust are of the utmost importance (…) We believe that USDC is a trusted stablecoin and reputable wrote the crypto exchange.

An excuse ?

It should be considered that this decision is not only intended to protect crypto investors. Indeed, Coinbase and Circle, are the founders of the CENTER consortium, which launched the USDC. The maneuver would allow USDC to inflate its size in the stablecoin market. It will also allow it to take market share from its competitor. Indeed, USDT is the largest stablecoin by market capitalization. The USDC comes next.

In doing so, Coinbase is following in the footsteps of the Binance exchange, which in September introduced an auto-conversion function from USDC to BUSD. The goal is to support and strengthen the development of the CZ-owned crypto exchange stablecoin.

To incentivize users, Coinbase has waived transaction fees for USDT/USDC for all global retail customers.

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential Tremplin.io!

Similar Posts