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Coinbase Advises Clients to Convert Tether (USDT) Into Circle’s USDC, Cites ‘Flight to Safety’

Customers of Coinbase, a leading cryptocurrency exchange platform based in the United States, have been issued a warning and advised to convert any Tether (USDT) stablecoin holdings they may have into USD Coin (USDC).

Customers of Coinbase are advised in a new blog post published by the company that USD Coin is one of the most trusted and reputable stablecoins available on the market and that it would be in their best interest to convert their USDT holdings into USDC so that they can protect their assets in the event that the market becomes volatile.

Additionally, Coinbase mentions that it will not charge customers any fees when converting USDT to USDC.

“Stability and trustworthiness are of the utmost importance to customers now more than they have ever been.” During times of market volatility, customers are provided with stability and confidence by fiat-backed stablecoins, which are cryptocurrencies that are pegged to reserve assets such as the United States dollar.

However, the events that have transpired over the course of the past few weeks have put some stablecoins to the test, and as a result, we have witnessed a flight to safety. Since we believe that USD Coin (USDC) is a reliable and well-known stable coin, we are making it easier for users to switch to it. Beginning today, we will not charge any fees to global retail customers who wish to convert USDT to USDC.

In 2018, Coinbase and Circle, a platform that facilitates financial transactions, collaborated to launch USDC, a cryptocurrency asset that is pegged to the dollar. According to Coinbase, the cryptocurrency asset is unique due to the fact that it is backed one hundred percent by cash and short-dated U.S. treasuries that are held in regulated institutions.

“In 2018, we collaborated to found USDC with the goal of establishing a global financial system that is more accessible to all. The United States Dollar Coin is a one-of-a-kind currency because it is fully backed by cash and short-term Treasury securities issued by the United States government that are held in financial institutions subject to U.S. regulation. It is always redeemable for U.S. dollars at a rate of 1:1.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.