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Cobinhood to Adopt Controversial Stablecoin Tether Amid Cessation of Banking Services

Recently launched cryptocurrency service platform, Cobinhood, has announced that it has suffered a termination of services from its banking partners. In order to continue operating, the exchange announced on its homepage that it will replace USD trading pairs with USDT pairs during the coming week.

Also Read: Vouching Bitfinex and Tether’s Bank Accounts Hold Nearly $3 Billion USD

Cobinhood to Adopt Tether in Response to Banking Woes

Cobinhood to Adopt Controversial Stablecoin Tether Amid Cessation of Banking ServicesTaiwanese-based cryptocurrency service platform, Cobinhood, recently announced that its banking partners had suspended their services to the company.

The exchange claims that it “had confirmed cooperation with banks in several areas and successfully operated for a while; however, the banks had internal debates about cryptocurrencies, which they consider might create unclear effects with traditional banking operations. Despite our efforts to keep the dialogue open with our partner banks, they decided to cease the service for Cobinhood, unfortunately.”

In order to continue its operations, the company has announced that it “will start replacing USD trading pairs with USDT” and introduce “crypto-to-crypto trading.” Cobinhood states that it will “keep approaching different cooperation opportunities with various financial institutions” in the meantime, adding that the company “welcome[s] discussions with banks to open up better willingness to embrace the future crypto-economy.” The company also expressed its intention to “support multiple fiat [currencies] as soon as possible.”

Cobinood to “Buy Back” Customers’ USD

Cobinhood to Adopt USDT Amid Cessation of Banking ServicesThe company states that in order to “protect users’ right[s],” it will “buy back all the U.S. dollars in the exchange.” In order to do such, Cobinhood Read More Here