DAI migration to USDS begins as Coinbase outlines conversion timeline

Coinbase has confirmed it will support the upcoming migration of $DAI to USDS, marking a key step in the transition of one of DeFi’s most widely used stablecoins.

According to the exchange, the conversion will take place between 4 May and 6 May 2026. User balances will be automatically migrated at an approximate 1:1 ratio from $DAI to USDS.

The move reflects a broader overhaul of the Maker ecosystem. MakerDAO continues its shift toward the rebranded “Sky” framework and a new generation of stablecoin infrastructure.

Sky also announced some days back that other major exchanges, like Binance, will also support the migration.

Coinbase details migration timeline and restrictions

Ahead of the conversion window, Coinbase said $DAI trading has already been moved to limit-only mode, with further restrictions set to follow.

• Trading will be fully disabled on 4 May
• Deposits and withdrawals will be paused between 4 and 6 May
• All eligible balances will be converted automatically with no fees

However, the exchange noted that users in several European Economic Area [EEA] jurisdictions will not be included in the migration.

$DAI transitions to USDS under Sky ecosystem overhaul

The migration is part of MakerDAO’s broader transformation into the Sky ecosystem, which introduces USDS as the successor stablecoin.

While USDS maintains a 1:1 peg to the U.S. dollar and remains collateral-backed, the shift represents a structural evolution in how the protocol operates.

$DAI, long considered one of DeFi’s foundational assets, played a central role in early decentralized finance by offering a crypto-collateralized alternative to centralized stablecoins.

The move to USDS signals a new phase in which the protocol is adapting its design and infrastructure to remain competitive in a more mature, regulated market environment.

Market data suggests migration is already underway

Recent data indicate that the transition is not merely planned, but already unfolding at scale.

USDS currently holds a market capitalization of over $11B, with circulating supply closely matching total supply. This suggests that liquidity has already been deployed across the ecosystem.

Trading activity has also surged, with daily volume rising sharply in recent sessions. This points to active migration flows and increasing usage as users transition from $DAI to the new token.

Despite the shift, USDS has maintained a stable peg near $1, indicating that the migration is occurring without immediate disruption to price stability.

Final Summary

• Coinbase’s support for the $DAI-to-USDS migration signals the transition is entering an execution phase, with exchanges beginning coordinated conversions.
• Market data shows USDS is already operating at scale, reinforcing that the shift from $DAI is actively underway rather than theoretical.

Source