Cryptocurrencies To Watch

Tag: Tether

  • Coinbase Plans to Delist Tether’s USDT Stablecoin in Europe

    Coinbase Plans to Delist Tether’s USDT Stablecoin in Europe

    Coinbase, one of the world’s largest crypto exchanges, has announced that it will delist Tether’s USDT stablecoin from its platform for European customers.

    USDT, the leading stablecoin issued by Tether, has maintained its dominance in the crypto market with a market capitalization exceeding $139.5 billion. Its removal from Coinbase’s European markets represents a significant change in the stablecoin ecosystem.

    Coinbase will limit services for certain assets, including USDT, PAX, PYUSD, GUSD, GYEN, and DAI, citing restrictions imposed by Europe’s Markets in Crypto-Assets Regulation (MiCA).

    Coinbase currently supports USD Coin (USDC) and the euro-backed stablecoin EURC, both of which are managed in partnership with the U.S.-based crypto firm Circle.

    Potential Relisting Under Consideration

    The first phase of MiCA’s stablecoin regulations has been in effect since June 30, while the complete regulatory framework for crypto asset service providers (CASPs) will take effect on December 30.

    In October, Coinbase announced its intention to delist MiCA-restricted stablecoins from its platform and encouraged users to exchange their holdings in noncompliant coins for alternative stablecoins such as USDC.

    Although Coinbase labels USDT as a “MiCA-restricted stablecoin,” European regulators have not explicitly stated that the stablecoin fails to comply with MiCA regulations.

    Tether CEO Paolo Ardoino has also openly criticized certain aspects of the MiCA regulations, revealing that Tether is developing a technology-driven solution designed specifically for the European market.

    In November, Tether formally announced it would discontinue its euro-backed stablecoin, EURt (EURT), citing community interest as the reason. At that time, EURT’s market capitalization represented just 0.02% of USDT’s total market value.

    Coinbase Launches Wrapped BTC

    The latest development came after the American crypto exchange announced the launch of its Coinbase Wrapped BTC (cbBTC), a new ERC20 token backed 1:1 by BTC currently available on Base and Ethereum networks.

    Coinbase noted that cbBTC will not have its separate trading options on Coinbase. However, users can trade cbBTC on other decentralized platforms using Coinbase wallet and other exchanges that may support it.

  • Tether’s USDT Reaches New Record of $120B Market Cap

    Tether’s USDT Reaches New Record of $120B Market Cap

    The world’s largest stablecoin issuer, Tether, has recorded a new milestone for its flagship stablecoin, USDT. According to the firm’s website, the US dollar-pegged stablecoin has surpassed $120 billion in market capitalization for the first time.

    A stablecoin is a type of cryptocurrency that aims to maintain a stable value over time by pegging its value to a reference asset, such as a fiat currency, commodity, or another crypto asset.

    Launched on October 6, 2014, Tether’s USDT was designed to provide traders and investors with a digital asset pegged to the US dollar, offering a safe haven from the typical price swings in the crypto world.

    What Drove USDT’s Growth?

    Tether has had its fair share of successes in the crypto industry over the past months. For example, the stablecoin issuer minted $1.3 billion worth of USDT after a severe market downturn in early August. An increasing supply of stablecoins is frequently seen as an indicator of a potential bull market, which implies that investors are accumulating stablecoins before investing in crypto assets.

    By August 9, the minted USDT stablecoins contributed to BTC’s more than 21% rebound, increasing its price from its low value on August 5 to over $60,300.

    Recently, a large share has been transferred to major centralized exchanges (CEXs), indicating potential buying pressure from investors.

    Data from Arkham Intelligence revealed that in the past 48 hours, Tether’s treasury transferred more than $66 million in stablecoins to Binance and over $20 million in USDT to the Kraken exchange.

    Can $120B USDT Trigger the “Uptober” Bitcoin Rally?

    The increasing supply of Tether’s stablecoins could spark the next “Uptober” rally, a term used in crypto for October, as the month has traditionally been bullish for bitcoin prices.

    In contrast, declining stablecoin inflows frequently result in a correction in the crypto market. On August 12, BTC price dropped below the crucial $60,000 threshold, undergoing a nearly 4% correction as institutional buying of USDT temporarily halted.

    According to data from CoinGlass, October has historically been the second-best month for the leading cryptocurrency, yielding average returns of 21%. This follows November, which boasts an average monthly return of over 46% for Bitcoin.

    In the last Bitcoin halving year of 2020, the price increased by more than 27% in October and over 42% in November, part of a six-month rally that continued until March 2021.