Coinbase Suggests Customers to Use Circle’s Stablecoin USDC Instead of Tether (USDT)
Coinbase, the largest cryptocurrency exchange in the United States, is urging its clients to swap their Tether (USDT) balances for USD Coin (USDC). In a recent business blog article, Coinbase informs its clients that USD Coin is among the most trustworthy stablecoins on the marketplace and advises them to change their USDT to USDC in times of heightened volatility. Coinbase also states that costs for converting USDT to USDC will be waived.
“Stability and reliability are of the highest priority to customers now than ever before. Stablecoins pegged to fiat currencies (cryptocurrencies tied to deposits such as the US dollar) offer clients with stability and trust in volatile markets.
Nevertheless, recent incidents have put certain stablecoins to the strain, and we have witnessed a rush to security. We feel that USD Coin (USDC) is a credible and trustworthy stablecoin, therefore we’re easing the process to toggle: from today, we’re eliminating costs for worldwide retail clients to exchange USDT to USDC.”
USDC is a dollar-pegged cryptocurrency instrument that Coinbase and payments processor Circle created four years back. According to Coinbase, the cryptocurrency asset is unique due to its backing by cash and short-term U.S. bonds owned by regulated entities.
“In 2018, we co-founded stablecoin USDC with the goal of building a more transparent, worldwide financial ecosystem. USDC is unusual in that it is backed not only by cash but also short-term U.S. government securities retained in U.S.-regulated financial firms. It may always be exchanged for one dollar.”