The biggest cryptocurrency exchange in the United States, Coinbase, does not want its clients to utilize the Tether stablecoin. Instead, it is paying rewards on its USDC stablecoin.
It was emphasized that USDC is one of the most recognized and trustworthy stablecoins, backed by “excellent reserves.” This action was a jab at the dominant stablecoin on the market, Tether.
In addition, USDC is issued by Circle, a firm linked with Coinbase that co-founded USDC in 2018. Coinbase has now enabled free transfers between USDT and USDC to encourage clients to switch.
Now, more than ever, stability and confidence are of the highest importance to clients, as stated by Coinbase. Over the previous two years, USDC’s market share has increased at the cost of USDT, thus many users tend to concur.
Grant Thornton LLP, one of the nation’s top audit, tax, and consulting companies, attests to USDC’s monthly openness, according to the statement. “USDC is unusual in that it is backed 100 percent by cash and short-term U.S. bonds held by U.S.-regulated financial institutions.”
Tether has not yet released a comprehensive audit, although it insists that its reserves are completely supported. On December 2, the company struck out at the mainstream media’s fear-mongering over increased loan risks.
The majority of Coinbase’s income is derived from above-average transaction fees. As a result of gloomy market circumstances and low volatility, that income has risen this year, therefore the decision to provide free transfers is unexpected.
Also Read: Ethereum Developers Plan To Enable Staking Withdrawals In March 2023
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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