Coinbase Pro Adds Tether (USDT), Signaling Growing Stablecoin Demand

Coinbase, the leading U.S.-based cryptocurrency exchange, has taken a pivotal step by listing Tether (USDT)—the world’s most widely used stablecoin—on Coinbase Pro. This move comes after years of Coinbase primarily backing its own stablecoin, USDC, and less than two weeks after Coinbase’s high-profile direct listing on the Nasdaq stock exchange. By making Tether available to its professional trading clientele, Coinbase underscores the growing role stablecoins play in the broader crypto ecosystem, particularly for DeFi (decentralized finance) activities.

This article details what the Coinbase Pro listing means for Tether, why the ERC-20 variant is the chosen standard, and how the stablecoin’s surging supply signals heightened demand for digital assets with minimal price volatility.

1. Tether on Coinbase Pro: Key Details

1.1 Listing Timeline and Trading Pairs

Coinbase Pro made its official USDT listing announcement on April 23, indicating that user deposits were immediately accepted. According to the exchange’s blog post, trading will begin on or after 6 PM Pacific Time, Monday, April 26, provided sufficient liquidity is reached.
Supported trading pairs on launch include:

• BTC/USDT
• ETH/USDT
• USDT/EUR
• USDT/GBP
• USDT/USD
• USDT/USDC

1.2 Supported Version: ERC-20 USDT

Coinbase Pro has made it clear that only the ERC-20 standard of Tether—running on the Ethereum network—will be available, at least for now. Therefore, USDT tokens circulating on other networks (like Tron or Omni) are not accepted or tradable on the platform.

1.3 Geographic Restrictions

Currently, Tether trading on Coinbase Pro excludes New York State. This jurisdictional limitation follows typical patterns for some crypto assets due to local regulatory frameworks. However, the exchange may expand coverage in the future if state-level regulations shift.

2. The Significance of Coinbase’s Tether Listing

2.1 Historic Caution Around Tether

Until now, Coinbase had notably refrained from listing Tether. Most of Coinbase’s stablecoin focus was on USDC, a token co-founded by the exchange. Skepticism regarding Tether’s reserves—as well as ongoing regulatory queries—had raised questions in the past about listing USDT.

However, Tether’s resolution of legal disputes, including a settlement with New York’s Attorney General (NYAG) earlier this year, appears to have alleviated many of Coinbase’s concerns.

2.2 Strengthening Coinbase Pro’s Stablecoin Portfolio

By listing Tether, Coinbase Pro embraces the market’s dominant stablecoin. This benefits the platform by offering deeper liquidity and a variety of stablecoin trading pairs. For institutional traders especially, Tether can facilitate large-scale trades with minimal market slippage.

2.3 Reinforcing the Role of Stablecoins

Stablecoins like USDT and USDC are crucial for:

• DeFi Lending: They function as a low-volatility intermediary, providing users with collateral or liquidity for yield farming and lending activities.
• Remittances: With minimal price fluctuations, cross-border transfers become more reliable.
• Trading: Stablecoins help crypto holders dodge abrupt volatility, letting them stay “in crypto” without holding a volatile token.

3. Tether’s Regulatory Landscape

3.1 Settlement with New York’s Attorney General

In February 2021, Tether and affiliate crypto exchange Bitfinex resolved a multi-year probe by the NYAG over allegations of reserve mismanagement. The settlement included:

• $18.5 million in fines.
• Agreement to provide quarterly documentation of Tether’s reserves, aiming to boost transparency.

With Tether under increased scrutiny, more frequent reporting may enhance USDT’s credibility, fostering acceptance by major exchanges like Coinbase.

3.2 Importance of Transparency

As Tether’s circulating supply surges, many market participants demand evidence of fully backed reserves. Ongoing audits and public attestations are crucial to retaining user trust—particularly if Tether aspires to remain the top stablecoin. Coinbase’s listing indicates a vote of confidence in Tether’s compliance efforts.

4. Surging Circulating Supply: Tether’s Dominance

4.1 Approaching 50 Billion USDT

According to Tether’s Transparency report, the stablecoin’s total supply stands at approximately 49.58 billion tokens, nearing a milestone of 50 billion. This figure emphasizes Tether’s global reach and the crypto sector’s reliance on stable assets:

• 24.4 billion on Ethereum (ERC-20)
• Around 26 billion on Tron
• Remainder on other networks (e.g., Omni, Solana, EOS)

4.2 Stablecoins Fueling DeFi Growth

The presence of stablecoins is essential for many DeFi operations—from lending protocols like Aave or Compound to DEXes such as Uniswap. Tether’s large supply underscores how stablecoins lubricate on-chain liquidity, reduce volatility for traders, and serve as a secure anchor in a rising market.

5. USDC vs. USDT: A Competitive Market

While Tether retains the crown for largest market capitalization among stablecoins, USDC—the stablecoin co-founded by Coinbase—continues to show rapid expansion:

• USDC’s supply soared by 244% in 2021, though it remains around 13.4 billion—significantly lower than Tether.
• USDC emphasizes trust via monthly attestations, addressing concerns about stablecoin transparency.

This competition fosters innovation and better auditing practices, ensuring stablecoins meet the varying needs of traders, institutions, and DeFi platforms.

6. Implications of Tether’s Coinbase Listing

6.1 Impact on Traders

For many professional and retail traders, Tether’s listing on Coinbase Pro:

• Expands Liquidity: USDT has long been a top stablecoin for crypto-fiat trades.
• Encourages Market Efficiency: Arbitrage opportunities between stablecoin pairs (like USDT/USDC) can tighten spreads.
• Attracts Institutional Clients: Institutions comfortable with Tether can seamlessly trade on one of the world’s most reputable exchanges.

6.2 Market Confidence

As a Nasdaq-listed, SEC-regulated entity, Coinbase’s decisions often signal the crypto industry’s direction. By finally embracing Tether, Coinbase bolsters confidence in stablecoins, bridging the gap between novices, institutional participants, and a once-controversial asset.

Conclusion

The addition of Tether (USDT) to Coinbase Pro marks a significant milestone for both Tether and the broader stablecoin market. After meeting liquidity conditions, Tether trades across various pairs, reaffirming its place as a crucial liquidity provider. This step follows months of regulatory scrutiny, culminating in Tether’s high-level settlement with the NYAG and ongoing public disclosures on reserves.

For traders, Tether’s listing on Coinbase Pro translates into expanded on-exchange stablecoin variety and enhanced liquidity, especially useful for daily trading activities and DeFi integrations. Meanwhile, the evolution of stablecoins like USDT and USDC is set to continue—each vying to deliver transparency, convenience, and trust. Coinbase’s backing of Tether underscores the platform’s commitment to offering a comprehensive suite of digital assets, thus further cementing stablecoins as a pillar of the modern crypto economy.

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