Bitfinex adds five stablecoins in notable Tether parting

Bitfinex – a major, and somewhat controversial, force in the cryptocurrency exchange sector – appears to have made good on its promise to break away from its long association with the Tether stablecoin.   

In a blog post today, Bitfinex has joined Binance in moving away from a reliance on Tether (USDT), by adding a range of stablecoins to its markets.

Last week Binance announced plans to changed what was previously its Tether (USDT) market listings to a broader ‘USDS’ (US dollar stablecoins) Market, with a pronouncement that it would widen its range of options for pairings in due course. Today, in a blog post, Bitfinex fleshed out similar plans as part of its new-found “commitment to providing coin agnostic platforms”, following its long-held association with the equally controversial Tether (USDT) stablecoin – a relationship that has driven conspiracy theories (and apparently attracted the attention of the US Federal authorities) for some time now.

Last week, in announcing its new withdrawal facility for big-ticket USDT users, Tether itself appeared to attempt to distance itself from Bitfinex in a similar way, describing the exchange – which infamously shared senior management (and still, apparently, shares a bank – the Bahamas-based Deltec) – as little more than a company with whom it “had a business to business relationship.”

Bitfinex’s will now list “all six major stablecoins” (USDT; Ethereum-backed stablecoin, Dai; Circle’s USDC; True USD; Paxos; and Gemini USD)  on both the main Bitfinex exchange and its decentralised Ethfinex platform. All of those stablecoins will also be traded in pairs against fiat US dollars, too – allowing traders to assess the premiums the market places on their use, something that has afflicted Tether for some time now.

The new coins are available to registered and approved Bitfinex users as of today.

As observers of cryptocurrency will know, Tether (USDT) dominates trading volumes and the stablecoin market. However, it has suffered significant problems of late with maintaining its supposed 1:1 ‘Tether’ with the US dollar – and has lately seen the rise of significant competition, driven by worries about its banking arrangements and whether it actually has the reserves necessary to support such a peg.