An Update on USDC and Silicon Valley Bank

Re:An Update on USDC and Silicon Valley Bank by everfree on Saturday March 11, 2023 @06:56PM (#35114150)

For better or worse, Coinbase does not have USDC trading pairs. They have USD trading pairs, which if you have USDC you're typically expected to access by redeeming your USDC for USD and then using the USD trading pairs. But since USDC to USD redemption is halted for now, you effectively cannot trade USDC for any other crypto on Coinbase.

However, other exchanges actually do have USDC markets. If you deposit your USDC with them, then you can directly trade order books on USDC/USD, BTC/USDC, and ETH/USDC, which function regardless of the lack of redemption and regardless of the actual market price of USDC.

If Coinbase had USDC trading pairs like other exchanges do, it would avoid the issue you outlined in your comment, but it would also fragment liquidity across two markets that are effectively identical during business-as-usual periods where redemptions function properly.

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Re:An Update on USDC and Silicon Valley Bank by danielvf on Saturday March 11, 2023 @08:21PM (#35115197)

That's not true, Coinbase has active USDC/USDT, USDC/EUR, and USDC/GBP pairs. I've traded on them overnight. They just disabled the 1-1 conversion with USD.

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Re:An Update on USDC and Silicon Valley Bank by everfree on Saturday March 11, 2023 @08:32PM (#35115291)

My bad. Looks like they added those pairs in 2021 and I didn't notice (though it looks like you have to "opt out of the USD and USDC unified experience" in order to access them). I edited my comment accordingly.

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