Crypto Exchange Coinbase asks users to change USDT to USDC

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Coinbase is waiving conversion fees for users who want to switch to a “trusted stablecoin” in a new campaign that highlights the quality of reserves that back the Circle-owned USD coin (USDC).

“The events of the past few weeks have tested some stablecoins and we have seen a leak to security,” Coinbase said in a blog post published Friday morning Asia time. “We believe the USD coin (USDC) is a trusted and reputable stablecoin.”

Coinbase said starting today it is waiving fees for global retail customers to convert tether (USDT) to USDC.

Coinbase is a co-founder of USDC.

On-chain data shows that USDT is the third most-traded digital asset on Coinbase, accounting for 5% of the exchange’s volume, where it currently trades at 99 cents.

A few days after FTX collapsed, USDT reversed and traded at 93 cents. The majority of trading pairs on exchanges have returned to $1, although data from CoinGecko shows that USDT is still trading at 99 cents on some pairs at Binance.

At the end of September, the issuing company, Tether, was ordered by a judge in federal court in New York to produce financial documents relating to the support of USDT. This is separate from the lawsuit in the New York Supreme Court (where CoinDesk is a party to the proceedings) which asks the New York Attorney General to release the documents he collected in his investigation into Tethers reservations.

Recently, Binance dropped support for USDC, automatically converting client holdings into its own BUSD stablecoin.

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