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Coinbase Pro Is Listing the Stablecoin Tether

The largest crypto exchange in the US, Coinbase, is adding Tether, the largest stablecoin by market capitalization, to the Coinbase Pro platform.

This is great news for Tether which, following a controversy, had to confirm that, Tether is indeed pegged to the US dollar, but it is backed by reserves that “include traditional currency and cash equivalents.”

The Coinbase press release doesn’t completely endorse Tether’s statement, but it does reference it: “For stablecoins like USDT, the company behind the protocol is responsible for holding reserves that fully back each token. The company behind Tether, Tether Limited, claims to hold reserves that fully back each USDT.”

Still, the news comes as a surprise for some, as Coinbase went public via direct listing just a couple of days ago and committed itself to transparency, while Tether was dogged by the New York investigation department for years. Tether doesn’t operate in the state of New York, which means it won’t be available to the Coinbase users in that area.

Now that Tether is possibly clear of all charges, the token has a market cap of $49 billion – a sum too large for Coinbase to ignore, considering that the second-largest stablecoin, USDC, has a market cap of only $11 billion.

Investor Adam Cochran declared: “This strongly legitimatizes Tether, which underpins huge price action, and now makes arbitrage to non-fiat exchanges more direct which is huge for capital flows.”

Of course, not everybody agreed, as lawyer Stephen Palley responded with “Maybe this strongly delegitimizes Coinbase.”

Source: Decrypt.com

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