Tether’s Fall Opens Other Stablecoins to Crypto Exchange Support
Several new developments have taken place in the crypto market since Tether (USDT), the world’s largest stablecoin, lost its dollar peg ( 1$–1 USDT) on October 15. In particular, key exchanges have shown support interest for stablecoins as Tether’s value drop caused major price discrepancies between BTC/USDT and BTC/USD trading pairs.
Coming a day after Tether broke its peg in the opposite direction to fall to an 18-month low of about $0.87, Gemini dollar (GUSD) saw its price hit an all-time high of $1.19 on Tuesday.
Huobi is the latest to offer support for four stablecoins. The exchange noted that it will start accepting deposits for Paxos Standard Token (PAX), True USD (TUSD), Circle’s (USDC), and Gemini exchange’s (GUSD) on its exchange as from today Oct. 19.
Huobi’s announcement follows OKEx’s similar support for the exact four stablecoins on Monday Oct. 15. OKEx is a Hong Kong-based crypto exchange and the second largest globally by volume according to CoinMarketCap. Prior to the announcement to add the four stablecoins, it had only Tether’s USDT listed on its platform.
Binance’s chief financial officer, Wei Zhou, told CoinDesk the exchange is considering listing more stablecoins in addition to the three it already supports. Binance, which had added support for Tether, Paxos and TrueUSD, briefly suspended withdrawals of Tether earlier this week when its price fell after the peg lost.
A stablecoin is a supposed cryptocurrency pegged to a real-world asset such as gold or USD. According to CryptoCompare’s recently-released taxonomy, there are three main types of stablecoins: centralised asset-backed pegs like TrueX (backed by gold), TrueUSD and Tether; collateralised pegs such as MakerDAO or haven; and seignorage-shares which act as decentralised algorithmic banks.