Users of Coinbase are prompted to convert their Tether balances to Bitcoin

Coinbase, the world's second-largest cryptocurrency exchange in terms of trading volume, is promoting the conversion of USDT to USDC by waiving the associated trading fees.

In the wake of the FTX crash, Coinbase has begun eliminating fees for retail clients throughout the world who desire to convert to a "trusted stablecoin." After the sudden collapse of FTX, Tether (USDT) reportedly fell off its perch and began trading at values much below 93 cents.

The events of the previous few weeks, as mentioned by Coinbase in a blog post, have put several stablecoins to the test, and we have witnessed a flight to safety. The trade platform stressed that USD Coin (USDC) is a stablecoin they have confidence in.

Unlike other cryptocurrencies, USDC is backed entirely by cash and short-dated U.S. bonds held in U.S.-authorized financial institutions, as stated by Coinbase, which co-founded USDC in 2018. It may be exchanged at any time for one dollar.

Acc

ording to the latest available on-chain statistics, USDT accounts for 5% of trading volume and sells for $0.99 per coin. Among the cryptocurrencies listed on Coinbase, USDT is the third most popular at the moment.

Although most trading pairs have now been restored to $1, CoinGecko reports that USDT will continue to trade at 99 cents on select pairings on Binance.

In its most recent action, Coinbase took aim at Tether, the most valuable stablecoin in the cryptocurrency market at $65 billion. A stablecoin supremacy war is likely to break out as a result of the current announcement. Exchanges will undoubtedly be perceived as taking sides in the battle for stablecoin supremacy.

In response to media "Fear, Uncertainty, and Doubt" (FUD) over increasing loan risk, Tether pushed back last week. In a blog post, the company lamented that traditional news outlets had been wrong about the deaths of many prominent cryptocurrency exchanges that had repeatedly targeted Tether.

Tether, the entity that distributes USDT, has been under examination for the reserves supporting its stablecoin. Since Coinbase is plainly concerned, it has made a statement stressing the need for stability and confidence while also waiving fees to switch from USDT to USDC.

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