Stablecoin provider doesn’t buy up cheap stablecoin: “it’s really suspicious that they’re not buying cheap stables, something’s wrong”

Stablecoin provider buys up cheap stablecoin: “it’s really suspicious that they’re supporting the stablecoin price, something’s wrong”

Easier said than done: they don't have that many assets that are their own; the market depth at 0.9 is probably not much; and they, like everyone else, would take the risk USDC ultimately gets redeemed at 0.9 or whatever the shortfall ends up being. Plus their compliance dude is going to throw a tantrum.

Coinbase seems to be taking steps to have enough liquidity at all times. So they don't lend "or take any action" with user funds unless the user explicitly instructs them to.

> The vast majority of Coinbase client cash is stored in FDIC-insured bank accounts. When a client has a large dollar balance, Coinbase stores their cash in a U.S. government money market fund to keep it safe and liquid. Like all assets on Coinbase, we hold client cash 1:1 and your assets are your assets. We do not lend or take any action with your assets unless you specifically instruct us to.

"How is client cash stored at Coinbase?" - https://help.coinbase.com/en/coinbase/other-topics/other/cli...

Doing something like you describe what also be a huge risk, what happens if USDC falls to 0? Everyone lost their funds? I'm sure there would be countless lawsuits if that was to happen.

Many of their assets are likely in a bank - which is closed until Monday.

coinbase is not letting people buy USDC on their platform

you could buy DAI which is also trading at a discount though

Because it may go to 0