Coinbase has taken a step to encourage its global retail customers to convert their Tether (USDT) holdings to USD Coin (USDC). In a statement made by Coinbase, he emphasized that customers are looking for stability and confidence against market volatility, and said that stable cryptocurrencies backed by fiat money will be a solution to this search. In this context, the crypto exchange highlights the USD Coin (USDC), issued by Centre, a consortium established with Circle in 2018, which is fully regulated and launched as a safer option.
In an effort to promote its own stablecoin, USDC, without addressing Tether’s controversial past, Coinbase announced yesterday that its global customers will not be charged transaction fees when converting their USDT holdings to USDC.
In the continuation of the statement, Coinbase said that there will be no spread besides the commission fee when switching from USDT to USDC with the Simple Trade system. At the same time, Coinbase seems to have stepped up its fight against market leader Tether, while emphasizing that stability and trust issues are now becoming more important. The strongest foundation of the USDC issuer is that it is audited every month by Grant Thornton LLP, one of the largest auditing companies in the USA. In this way, USD Coin has an important place in transparency, confirming that it is backed by 100% cash and short-term US papers.
On the other hand, Tether does not have this level of audit report. On the other hand, Tether, which is frequently criticized by market participants for not being subject to the supervision of an international organization, continues to be the market leader. Finally, the USDT issuer has faced criticism from the mainstream media due to its increased credit risks. Concerns about stablecoin market leader Tether also included holding corporate bonds in its reserves, which are seen as risky. Taking these criticisms into account, Tether management announced in October that corporate bonds were sold and replaced by US treasury bonds.
Another important development regarding stablecoins in recent months was Binance’s decision to automatically convert USD Coin, TrueUSD and Pax Dollar assets to Binance USD (BUSD) in September. It was thought that this policy of Binance could especially affect the market share of USDC. According to the latest situation, Tether maintains its position as the market leader with a market value of 65.7 billion dollars. Next comes USDC, which has a market value of $ 42.7 billion, while the market value of BUSD, the third largest stable crypto asset of the market, continues at $ 22 billion.