Coinbase, one of the largest centralized exchanges, encourages its global retail customers to switch from USDT to USDC, waiving its conversion fees.
As per the Coinbase announcement, they believe that USD Coin is a reliable and reputed stablecoin, so they are trying to make the process easy for the users to switch. Coinbase has repeatedly emphasized the significance of stability and trust for clients in its announcement.
However, the uniqueness of USDC lies in its 100% backed by short-dated U.S. treasuries held in U.S.-regulated financial institutions and by cash. Additionally, an income generation of up to 1.5% APY³ is applicable for eligible customers having USDC holdings with Coinbase.
In Friday’s blog post, Coinbase stated that in the past few weeks, some stablecoins had faced scrutiny, and they sought the safety of the users’ assets. They believe that USDC is the most trusted and reliable stablecoin as high-quality reserves back it. Users might agree to this as the market share of USDC has leveled up from last year at USDT’s expense.
The centralized exchange Coinbase came with a revolution battling for stablecoin supremacy in the crypto market. Different exchanges are taking sides in the war for stablecoin dominance.
Recently, the world’s largest crypto exchange Binance has stopped supporting USDC and converted user holdings into its BUSD stablecoin. The step has been taken looking at the stablecoin battle in the market. Every other exchange boasts dominance of their native tokens.