The exchange platform Coinbase encouraged its users to convert their USDT stablecoins issued by Tether into USDC in a press release. Its clients will be able to swap their USDT for USDC at no cost.
Coinbase highlights the merits of the USDC
Through a press release, the Coinbase exchange highlighted the merits of its stablecoin: the USDC. The platform shared its users to ditch their USDT for USDC.
Launched in 2018 by Coinbase and Circle through the Center Consortium, USD Coin currently has a market cap of over $42 billion. It is the second largest stablecoin in the market behind USDT.
Stablecoins have become a key market player and source of liquidity. A stablecoin must be backed by 1 USD or equivalent.
You can read our article “All about stablecoins“
Users of the coinbase platform will now be able to swap their USDT for USDC at no cost, according to the exchange’s statement.
“We believe USD Coin (USDC) is a trusted and reputable stablecoin, so we’re making the change easier: Starting today, we’re waiving fees for global retail clients to convert USDT to USDC.”Communiqué de Coinbase
Following the aftermath around FTX’s collapse, US-based cryptocurrency platform Coinbase mentioned that USDC is a much safer alternative. She also pointed out that her stablecoin is 100% backed by cash and short-term US Treasuries held in regulated US financial institutions.
Beyond the current debates on reserve audits, there is a real battle of stablecoins. Coinbase’s announcement urging its users to convert their USDT to USDC (at no cost) comes after Binance cut its support for USDC, which caused the stablecoin’s market capitalization to decline by $3 billion.
The war between the two stablecoins continues, Binance’s BUSD is still to be watched with a current market capitalization of $22 billion.