Coinbase to Impose 0.1% Fee on Tether/USD Swaps

JOON HYOUNG LEE

Summary

Coinbase announced it will charge a 0.1% fee on Tether (USDT) to USD conversions.
The fee applies if the Tether-to-USD conversion amount exceeds $5 million over 30 consecutive days.
Coinbase's poor Q2 earnings and declining stock price coincided with the fee policy change.

The American cryptocurrency exchange Coinbase will charge a 0.1% fee when converting Tether (USDT) to US dollars.

According to foreign media such as Cointelegraph on the 7th (local time), Coinbase will impose a 0.1% fee on Tether-to-USD conversions starting from the 13th. The fee applies when the amount of Tether to USD conversions exceeds $5 million over 30 consecutive days. Cointelegraph reported, "The fee will apply if the amount obtained by subtracting Tether sales from Tether purchases over 30 days exceeds $5 million."

Coinbase is introducing this new conversion fee structure to improve profitability. Recently, Coinbase announced that its revenue for the second quarter totaled $1.5 billion. This figure falls short of experts' forecasts, which had predicted Coinbase's Q2 revenue would be at least $1.56 billion to as much as $1.59 billion. Cointelegraph noted, "Coinbase's stock price dropped 8% after the Q2 earnings announcement."

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