- Coinbase urges users to ditch USDT.
- The exchange is offering USDT to USDC conversion without incurring a fee.
- The firm assets USDC is audited regularly.
As concerns about Tether’s USDT’s credibility grow, cryptocurrency exchange Coinbase has advised its users to switch to its own stablecoin, USDC. As a result, Coinbase is eliminating conversion costs for users who want to move to the “trusted stablecoin” as part of a new campaign emphasizing the quality of reserves backing 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. We believe that USD Coin (USDC) is a trusted and reputable Stablecoin, so we’re making it more frictionless to switch,” the firm said in a blog post published Friday.
In addition, Coinbase said that USDC is one of the most recognized Stablecoins since it is backed by “high-quality reserves,” stressing the utmost significance of stability and trust for clients. Many users seem to agree, as USDC’s market share has increased over the past year or two at the expense of USDT.
Coinbase also reiterates that Grant Thornton LLP, one of the top audit, tax, and advisory companies in the United States, provides monthly attestations to show that USDC is transparent. The exchange wrote:
“USDC is unique in that it’s 100% backed by cash and short-dated U.S. treasuries held in U.S. regulated financial institutions.”
On-chain data suggests that USDT is the third-most commonly traded digital asset on Coinbase, representing 5% of the platform’s total volume. However, the Stablecoins issuer is yet to release a complete audit of its reserves but asserts that its reserves are fully backed.
The Stablecoin’s issuer has fired back at the press over reports that Tether had lent its own currencies to customers, leaving it with inadequate liquid assets to support the token in the event of a crisis. Tether was quick to publish a blog post to counter these claims, stating that the allegations had many misconceptions about Tether and USDT.
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