US virtual currency exchange Coinbase, USDT (Tether) processing begins

Last week, the crypto asset Tether, a U.S. dollar stablecoin, which is listed on the Nasdaq Token Exchange, announced its move to delist (#USDT#).

Coinbase

Coinbase Pro processes Ethereum-based USDT. Deposits have already begun, and trading will begin after the 26th (US time) (not applicable to New York residents).

Initially, there are six trading pairs: BTC/USDT, ETH/USDT, USDT/EUR, USDT/GBP, USDT/USD, and USDT/USDC. USDC is a US dollar stablecoin developed by Coinbase in cooperation with Circle, and will also strengthen liquidity with USDT.

The treatment of USDT and New York State's exemption response appear to be related to the outcome of the Tether trial. Tether, the issuer of USDT, and its subsidiary Bitfinex reached a settlement with the New York judiciary in February this year for allegedly providing $850 million in fraudulent loans, reducing uncertainty about the treatment of USDT. In addition, as a condition of the settlement, there is a history of being required to suspend operations in New York State, and transactions with New York State residents may also be restricted.

Tether has long been concerned about its legality in the USDT backing issue, but finally reached a settlement with the New York judicial authorities. Tether has agreed to disclose quarterly reports on backing funds as part of the settlement and is taking steps to increase transparency in USDT issuance.

Coinbase’s introduction to USDT says: “Tether is responsible for guaranteeing the full backing of USDT and states that it owns 100% of the backing assets.”

USDT is currently the most used stablecoin in the world with a market cap of $53 billion.