August 4, 2021

Crypto exchange Coinbase adds stablecoin Tether (USDT)

Crypto exchange Coinbase adds stablecoin Tether (USDT)

The stablecoin Tether has received arguably the highest confidence mark to date. Coinbase cryptocurrency exchange Pro opened deposits for USDT stablecoin from Tether. The asset will be listed on April 26th.

Tether will be listed on the Coinbase Pro platformin the form of an ERC20 token on the Ethereum blockchain. Trading will start on April 26 in pairs with Bitcoin, Ether, Euro, Pound, Dollar and USDC, subject to meeting liquidity requirements. The stablecoin will be available in all jurisdictions Coinbase serves with the exception of New York State.

Prior to that, USDT was already available on American exchanges such as Kraken and Binance.US.

Coinbase, however, is subject to stricterregulatory oversight compared to closest competitors. The listing takes place just over a week after Coinbase was added to the Nasdaq stock market. Two months ago, Tether settled claims with the New York Attorney's Office, which fined the company and its sister exchange Bitfinex $ 18.5 million. At the time, Attorney Laetitia James issued a formidable statement.

“Bitfinex and Tether irresponsibly and illegally harbored large financial losses in order to maintain their scheme and protect their profits. - she said.

Tether's claims that its virtual currencywas fully backed by US dollars at all stages were a lie. This decision makes it clear that those who trade virtual currencies in New York and think they can get away from our laws cannot and will not do it. "

Tether has a controversial reputation for yearsdue to speculation about an unsecured release of stablecoins to manipulate the cryptocurrency market and confirmed lending to Bitfinex from its own reserves, which became the subject of an investigation by the Attorney General's Office. However, the facts speak for themselves. Coinbase is listing a stablecoin after two key events.

“Traders have long understood that trading without USDTBitcoin and altcoins will be nearly impossible, "the Fomocap analyst wrote earlier, mentioning" liquidity, fiat channels, OTC transactions, miners and cold wallets "as areas of use for stablecoins.

Tether remains the mosta circulating asset of the cryptocurrency market with a trading volume of $ 193 billion over the last 24 hours.Bitcoin follows with $ 90 billion.The capitalization of stablecoin, as a result of its rapid growth in the current cycle, is approaching $ 50 billion, although at the beginning of the year it was about $ 20 billion.

Under the terms of the agreement with the Prosecutor General's Office of Tethercommitted to regularly publishing USDT collateral reports and submitted the first in March. Although the valuation methodology leaves much to be desired and is far from a full audit, Moore Cayman has confirmed that at the time of the audit, USDT was indeed oversupplied by the issuer.

“We consider the evidence we have receivedsufficient and appropriate to provide a reasonable warranty opinion. The management of Tether Holdings Limited is responsible for the information presented in their report, which relates to the consolidated assets of Tether Holding Limited to support their consolidated liabilities ", - noted in the audit company.

Coinbase takes a similar position in its press release:

“In the case of stablecoins such as USDT, thebehind the protocol, the company is responsible for keeping the reserves fully backing each token. The company behind Tether, Tether Limited, claims to hold reserves that fully support each USDT. "

Coinbase has its own stablecoin USDCoin (USDC), issued by the CENTER consortium, of which it is a member with Circle. USDC is by far the second largest stablecoin with a market cap of $ 11 billion.

“This emphatically legitimizes Tether,supporting a huge price movement, and now makes arbitrage on exchanges without the support of fiat currencies more direct, which is of great importance for capital flows "- said Cinneamhain Ventures partner Edam Cochran.

Lawyer Stephen Pally suggests looking at the situation from a different angle.

"Perhaps this decisively invalidates Coinbase."- he wrote.

Where is it more profitable to buy bitcoin? TOP-5 exchanges

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Site reliability is primarily determined bytrading volume and number of users. By all key metrics, Binance is the largest cryptocurrency exchange in the world. Binance is also the most popular cryptocurrency exchange in Russia and the CIS, since it has the largest turnover of funds and supports transfers in rubles from bank cards Visa / MasterCard and payment systems QIWI, Advcash, Payeer.

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5 Huobi 6.5

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Crypto exchange Coinbase adds stablecoin Tether (USDT)


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