{"id":523962,"date":"2022-12-09T13:04:45","date_gmt":"2022-12-09T10:04:45","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/coinbase-takes-a-shot-at-tether-encourages-users-to-switch-to-usdc\/"},"modified":"2022-12-09T13:04:45","modified_gmt":"2022-12-09T10:04:45","slug":"coinbase-takes-a-shot-at-tether-encourages-users-to-switch-to-usdc","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/coinbase-takes-a-shot-at-tether-encourages-users-to-switch-to-usdc\/","title":{"rendered":"# Coinbase takes a shot at Tether, encourages users to switch to USDC"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a384421b321a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a384421b321a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/coinbase-takes-a-shot-at-tether-encourages-users-to-switch-to-usdc\/#%E2%80%9D_Coinbase_takes_a_shot_at_Tether_encourages_users_to_switch_to_USDC_%E2%80%9C\" >&#8221; Coinbase takes a shot at Tether, encourages users to switch to USDC &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Coinbase_takes_a_shot_at_Tether_encourages_users_to_switch_to_USDC_%E2%80%9C\"><\/span>&#8221; Coinbase takes a shot at Tether, encourages users to switch to USDC &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTIvNGI3MjAwNWItY2Y1Yi00Njk0LWE3NmQtZmU4ZmE1NGYxNGI2LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-30a6cf80>United States-based cryptocurrency exchange Coinbase has <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coinbase.com\/blog\/switch-to-the-trusted-and-reputable-digital-dollar-usdc\">asked<\/a>\u00a0its customers to convert their Tether-issued USDT (USDT) stablecoin to USD Coin (USDC), a USD-pegged stablecoin issued by Circle and co-founded by Coinbase in 2018.<\/p>\n<p>The cryptocurrency exchange suggested that USDC is a much more secure alternative in the wake of the FTX collapse saga and has also exempted any fee on the conversion of USDT to USDC on its platform. The firm said:<\/p>\n<blockquote><p>\u201cWe believe that USD Coin (USDC) is a trusted and reputable stablecoin, so we\u2019re making it more frictionless to switch: starting today, we\u2019re waiving fees for global retail customers to convert USDT to USDC.&#8221;<\/p><\/blockquote>\n<p>Stablecoins started out as an onboarding tool for the crypto exchanges in the early days of crypto, but today they have become a key market player and liquidity source. However, there has always been some form of scrutiny around their reserves backing these stablecoins. A stablecoin, by definition, must be backed by 1 USD or equivalent.<\/p>\n<p>The reserve debate intensified in the aftermath of FTX collapse as many firms with exposure to the tainted exchange and its sister company Alameda Research went bankrupt. There was another allegation about Binance CEO Changepeng Zhao trading barbs with former FTX CEO Sam Bankman-Fried and accusing him of trying to depeg USDT.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">post-strike FTX scoop: Just before the bankruptcy, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/cz_binance?ref_src=twsrc%5Etfw\">@cz_binance<\/a> accused <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SBF_FTX?ref_src=twsrc%5Etfw\">@SBF_FTX<\/a> of trying to drive down the price of Tether. They traded barbs in a group chat with other crypto execs. \u201cThe more damage you do now, the more jail time,&#8221; CZ said. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/OTlYgoEruJ\">https:\/\/t.co\/OTlYgoEruJ<\/a><\/p>\n<p>\u2014 David Yaffe-Bellany (@yaffebellany) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/yaffebellany\/status\/1601095900557766656?ref_src=twsrc%5Etfw\">December 9, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Tether published its latest quarterly attestation on Nov. 10, just a day before the exchange filed for bankruptcy. The report noted that 82% of Tether\u2019s reserves are held in cash, cash equivalents and other short-term deposits as of Sept. 30, 2022.<\/p>\n<p>Coinbase also stressed that USDC is 100% backed by \u201ccash and short-dated U.S. treasuries held in U.S. regulated financial institutions,\u201d and it is always redeemable 1:1 for U.S. dollars.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Circle co-founder says converged dollar books on Binance would be good for USDC<\/em><\/strong><\/p>\n<p>Apart from the debate over reserve audits, there is a growing \u201cstablecoin war\u201d among crypto exchanges as well. Coinbase\u2019s request to convert USDT to USDC comes just a couple of months after Binance, another global player, cut support for USDC leading to a drop of $3 billion in the market cap of the Coinbase co-founded stablecoin.<\/p>\n<p>Tether-issued USDT is the largest stablecoin by market share with a market cap of $65 billion, USDC currently sits at a $42 billion market capitalization but has rapidly eaten into USDT\u2019s market share. Binance\u2019s stablecoin, BUSD, currently has a market cap of $22 billion.<\/p>\n<p>Tether didn\u2019t respond to Cointelegraph\u2019s requests for comments at press time.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/coinbase-takes-a-shot-at-tether-encourages-users-to-switch-to-usdc\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Coinbase takes a shot at Tether, encourages users to switch to USDC &#8220; United States-based cryptocurrency exchange Coinbase has asked\u00a0its customers to convert their Tether-issued USDT (USDT) stablecoin to USD Coin (USDC), a USD-pegged stablecoin issued by Circle and co-founded by Coinbase in 2018. The cryptocurrency exchange suggested that USDC is a much more&#8230;<\/p>\n","protected":false},"author":1,"featured_media":523963,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/4b72005b-cf5b-4694-a76d-fe8fa54f14b6.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75014,75936,74956,75493,82350,117,70934,36041],"class_list":["post-523962","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-binance","tag-circle","tag-coinbase","tag-stablecoin","tag-usd-coin","tag-business","tag-regulation","tag-tether"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/523962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=523962"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/523962\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/523963"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=523962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=523962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=523962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}