- CEX OKX has ceased USDT trading pairs for European users.
- The market remained relatively stable despite this development.
Tether [USDT] has been the most dominant stablecoin in the crypto sector for the longest time.
Contemporaries such as USD Coin [USDC] and DAI have had a challenging time trying to catch up with USDT’s ever-growing market cap.
However, OKX’s recent decision may give other stablecoins a chance to go toe to toe with USDT.
OKX makes some changes
Cryptocurrency exchange OKX has discontinued support for trading pairs involving Tether’s USDT. However, this is only for users residing in the European Union and the European Economic Area (EEA).
As per a tweet on the 18th of March, the platform now exclusively facilitates spot crypto trading with USDC and euro pairs, while USDT can only be exchanged against USDC and euro.
A spokesperson from OKX explained that the decision stemmed from the exchange’s strategic emphasis on enhancing euro-denominated liquidity within the region.
They highlighted the company’s goal for the year to increase EURO pair liquidity and establish itself as the preferred platform for EURO to crypto spot trading.
Source: X
Looking at possible impacts
For those who had traded in USDT pairs, this decision could necessitate adjustments to their trading strategies, as they transition to trading with USDC and euro pairs exclusively on the platform.
With fewer trading avenues available for USDT on the OKX platform, there may be reduced liquidity for the stablecoin, making it harder for users to buy and sell USDT without experiencing slippage.
If OKX’s decision leads to a broader trend of exchanges reassessing their support for USDT trading pairs, it could undermine confidence and diminish the stablecoin’s utility as a medium of exchange.
This could result in decreased demand for USDT, as users may seek alternative stablecoins or fiat currencies that are more widely supported by exchanges.
Despite these factors, the market cap for USDT remained relatively unfazed.
Source: CoinMarketCap
Even though there wasn’t much of a change in the short term in the stablecoin status quo, things could change in the future if the impact of OKX’s decision lingers.
