A Top-20 Crypto Exchange Is Replacing Tether With a Rival Stablecoin

A top-20 exchange is phasing out an embattled cryptocurrency.

Digifinex has decided to replace tether, perhaps the best-known "Stablecoin" designed to maintain a steady exchange rate with the U.S. dollar, with a rival, TrustToken's TrueUSD. Based in Singapore, Digifinex handled $131 million in trading volume over the past 24 hours, according to CoinMarketCap, making it the 16th-largest exchange by that measure.

Kiana Shek, Digifinex's co-founder, told CoinDesk she'd been "Looking for ways to get rid of USDT" for months, adding, "I simply don't believe in tether but I had no choice" but to list it.

Despite allegations that the Tether's owners and management - which overlaps with that of the cryptocurrency exchange Bitfinex - are printing money USDT's value remains pegged to $1.00, and many exchanges list multiple trading pairs in USDT terms.

These listings appeal to traders because USDT can be more easily shifted between exchanges than fiat currency.

At the time of writing, tether is the eighth-most valuable cryptocurrency by market capitalization.

It is notable that a large exchange has decided to move away from offering tether trading pairs and adopt a rival stablecoin instead. Given the high number of stablecoins that have recently launched or are set to launch soon, the competition Tether faces is likely to increase.

"The risk from tether and the need for a new USD stablecoin is so great," TrustToken co-founder and COO Stephen Kade told CoinDesk, "That exchanges have started trying to create their own." An example of this trend is the Gemini exchange's recent announcement of a dollar-pegged cryptocurrency.

Initially, Digifinex will offer TrueUSD trading pairs with bitcoin, ethereum and tether.

Both tether and TrueUSD trading will remain available for a while, said Pham, before tether is dropped from the exchange.