A fresh wave of USD-backed regulated stablecoins seems to be making their way onto high- volume crypto exchanges. These early indications imply that traders may end up trusting these regulated stablecoins more than Tether (USDT). On November 15, major cryptocurrency exchange, Binance announced that it would be listing Circle’s USD-pegged stablecoin, USD Coin (USDC), with deposits opening immediately.
In the past couple of weeks, cryptocurrency firms Paxos, Gemini and Circle have all launched asset-backed stablecoins cryptocurrency tokens. The values of these tokens are pegged to the U.S. dollar with the physical assets being stored in company-controlled bank accounts.
All of the aforementioned crypto exchanges have received the regulatory authorization to operate in New York. The New York Department of Financial Services (NYDFS) is known as the strictest cryptocurrency regulatory framework in the U.S. Paxos and Gemini exchanges have each received NYDFS charters, while the Circle exchange has received “BitLicense”, the state’s most coveted license.
The new stablecoins Paxos Standard (PAX), the Gemini Dollar (GUSD) and USD Coin (USDC) seem all set to topple USDT as the fiat-pegged token of choice in the crypto markets. Presently, Tether (USDT) is the eighth largest cryptocurrency with a market cap of $2.8 billion. It is also known as the second most liquid cryptocurrency after Bitcoin, as reported on CCN.
All three issuers touted that their tokens PAX, GUSD and USDC will be regulated financial instruments. This brought about an unstated comparison to USDT, whose issuer has received a subpoena from U.S. regulators. As these new stablecoins start achieving liquidity on exchanges, it appears that the controversy surrounding Tether is causing USDT to be traded at a discount.
Crypto exchange Binance is not the first major platform to list USDC. Just last month, the Coinbase exchange extended its support towards the asset. To facilitate increased transparency, USDC has engaged a top-auditing firm to release monthly balance attestations of the corresponding USD and USDC balances issued or held, as reported on Cointelegraph. Binance mentioned that trading for USDC/BTC and USDC/BNB trading pairs will commence from November 17.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]