In a significant development for cryptocurrency traders, Coinbase Pro announced the listing of Tether (USDT) on its platform. This move marks a notable shift for the exchange, which had previously centered its stablecoin support around its native USD Coin (USDC). The announcement, made on April 23, revealed that trading would commence on April 26, pending sufficient liquidity conditions.
Support for USDT will be available across most of Coinbase's supported jurisdictions, though New York State remains an exception. Initially, only the Ethereum-based ERC-20 version of USDT will be offered. The trading pairs introduced include BTC/USDT, ETH/USDT, USDT/EUR, USDT/GBP, USDT/USD, and USDT/USDC.
It is important to note that USDT trading is currently exclusive to Coinbase Pro, the platform tailored for professional and institutional traders, and is not yet available on the standard Coinbase retail exchange.
Starting today, inbound transfers for USDT are now available in the regions where trading is supported. Traders cannot place orders and no orders will be filled. Trading will begin on or after 6PM PT on Monday April 26, if liquidity conditions are met.
— Coinbase Pro (@CoinbasePro) April 22, 2021
Tether's Rapid Market Growth
This listing comes at a pivotal moment, as the circulating supply of Tether approaches the monumental 50 billion mark. According to the latest transparency reports, nearly 49.58 billion USDT are currently in circulation.
Of this total, roughly 24.4 billion are issued on the Ethereum blockchain. The majority of the remaining supply, nearly 26 billion tokens, operates on the Tron network. The growth trajectory for Tether has been steep, with its supply increasing by 137% since the start of 2021. This surge underscores the expanding demand for stablecoins, particularly within decentralized finance (DeFi) applications.
For context, USD Coin (USDC), issued by Circle, currently has a circulating supply of 13.4 billion. It has experienced an even more dramatic growth rate of 244% this year. Binance USD (BUSD) holds the position of the third-largest stablecoin, with a supply of 7 billion. Its growth has been the most explosive, surging over 600% in 2021, largely fueled by the rising popularity of the Binance Smart Chain and its associated DeFi ecosystems.
👉 Explore real-time market data and trading pairs
Understanding the Broader Market Context
The timing of this listing is also set against a backdrop of a significant cryptocurrency market correction. The total market capitalization has declined by approximately 20% from its all-time high of $2.3 trillion in mid-April. Within a 24-hour window, the market shed around $280 billion in value as major cryptocurrencies, including Bitcoin, experienced substantial pullbacks.
Bitcoin's price dipped below the $50,000 threshold, a level not seen since early March. This movement has led to the formation of a lower low on charts, which some analysts interpret as a potential signal for a major trend reversal in the market.
Frequently Asked Questions
Why did Coinbase Pro decide to list Tether (USDT) now?
Coinbase Pro likely listed USDT due to its massive and growing circulation, which recently approached 50 billion tokens. The immense user demand for diversified stablecoin options, especially from professional traders on its platform, made this a strategic move to increase liquidity and trading pairs.
What trading pairs are available for USDT on Coinbase Pro?
The available trading pairs are BTC/USDT, ETH/USDT, USDT/EUR, USDT/GBP, USDT/USD, and USDT/USDC. This provides traders with multiple avenues to trade USDT against major cryptocurrencies and fiat currencies.
Is USDT available on the regular Coinbase exchange?
No, at this time, Tether (USDT) trading is only available on Coinbase Pro. The standard Coinbase.com retail platform does not yet support it, as Pro is designed for more advanced trading functionalities.
Which blockchain version of USDT is supported on Coinbase Pro?
Coinbase Pro is only supporting the ERC-20 version of Tether, which operates on the Ethereum blockchain. Other versions, such as those on the Tron network, are not available for trading on the exchange.
How does Tether's growth compare to other major stablecoins?
Tether remains the dominant stablecoin by a significant margin with nearly 50 billion in supply. While USD Coin (USDC) has a higher growth percentage this year, its total supply is much smaller. Binance USD (BUSD) has seen the highest percentage growth but is still the smallest of the three.
What does the current market correction mean for stablecoins?
Market corrections often increase the demand for stablecoins as traders seek to mitigate volatility by moving assets into price-stable instruments. This can further drive the adoption and circulation of tokens like USDT, USDC, and BUSD.