#Why is Pornhub Transitioning from Tether to USD Coin?
Pornhub has announced its decision to transition from using Tether (USDT) for payments to adopting USD Coin (USDC). This change, initially reported by a Singapore-based social media influencer and OnlyFans creator, brings a deadline of June 1 for content creators to update their payment information. Failing to do so may disrupt their income streams.
This strategic shift is motivated by the advantages of USDC, particularly its full reserve backing and compliance with the EU’s Markets in Crypto-Assets framework, known as MiCA. Circle successfully received an Electronic Money Institution license from the Autorité de contrôle prudentiel et de résolution in July 2024, ensuring USDC's operational status across the EU. This makes USDC the first stablecoin approved for such seamless functionality, avoiding problems faced by non-compliant cryptocurrencies.
Currently, Pornhub’s Content Partner Program and Model Program pages list USDC along with Verge as approved cryptocurrencies for payouts. It remains uncertain if USDT will still be available for Premium members, as Pornhub continues to accept USDT on platforms like Ethereum and Tron, along with other cryptocurrencies.
#How Did Payment Challenges Lead to This Shift?
Initially, Pornhub's engagement with cryptocurrencies began as an experimental endeavor. Back in 2018, the platform integrated Verge for Premium subscriptions and later added PumaPay for recurring billing. However, for a significant time, cryptocurrency adoption remained largely limited, catering mainly to niche privacy-focused users.
The turning point arrived in late 2019 when PayPal ceased its payout services to creators, prompting Pornhub to adopt USDT for stable, dollar-pegged payments that circumvented traditional banking limitations. The situation exacerbated in December 2020 with the suspension of Visa and Mastercard’s processing services, compelling Pornhub to increasingly rely on cryptocurrency for payments.
Since 2021, Pornhub has expanded its cryptocurrency options significantly, integrating major digital assets like Bitcoin, Ethereum, Litecoin, Dogecoin, and now USDC. The increasing reliance on cryptocurrencies is not just about payment flexibility but also about ensuring compliance and security in the evolving financial landscape.