The U.S. dollar stablecoin Tether, which has had its share of regulatory controversy, is reportedly going to be listed on the newly enhanced Coinbase exchange system, with a new launch April 26 and a brand-new publicly listed equity: COIN.
Last week, we reported on Coinbase going public, and even external efforts to provide fractional stock tokens for investors, so that going into 2021, traders can choose to buy either whole shares of Coinbase, or tiny parts of a share.
Also, unlike some other emerging trading options, Coinbase users can make use of the platform in the U.S., although it’s not yet available in New York State, where a special “Bitlicense” proves regulatory compliance.
Experts point out that to be successful in offering Tether trades, Coinbase will need a certain amount of liquidity, and the ability to port Tether USD assets onto ERC-20 tokens on an Ethereum blockchain.
The Coinbase initiative is good news for Bitfinex, which manages Tether. Last year, a challenge by the New York Attorney General’s office against Bitfinex led to an $18.5 million settlement. Bitfinex also has to allow various types of ongoing review as per the terms of the settlement deal.
Bitfinex isn’t the only party that may profit from ongoing Coinbase operations. In 2020, Coinbase delisted Ripple’s XRP token after the SEC brought a suit against various parties including CEO Brad Garlinghouse. Although the SEC said parties did not register XRP as a security, the courts are questioning whether XRP might actually be a different type of asset.
Now, however, with the SEC suit in major trouble, there are rumors that Coinbase will be relisting XRP, because, in the words of writers at Coin4World, “only Ripple can illegally sell XRP.”
All of these are big changes that crypto investors should follow. Weigh in on comments and tell us what you think will become of Tether and XRP in the years to come.