Coinbase has confirmed that it will support the upcoming version migration of $DAI to USDSmarking an important step in the transition of one of DeFi’s most widely used stablecoins.
According to the exchange, the conversion will take place between May 4 and May 6, 2026. User Balances are automatically migrated at a ratio of approximately 1:1 $DAI to USDS.
This move reflects a broader overhaul of the Maker ecosystem. MakerDAO continues its shift towards the new ‘Sky’ framework and next generation stablecoin infrastructure.
Sky also announced a few days ago that other major exchanges, such as Binance, will also support the migration.
Coinbase details the migration timeline and restrictions
Prior to the conversion period, Coinbase said $DAI trading has already moved to limit-only mode, and further restrictions will follow.
- Trading is completely disabled May 4
- Deposits and withdrawals are paused in between May 4 and 6
- All eligible balances will be converted automatically and free of charge
However, the exchange noted that users in various European Economic Areas [EEA] jurisdictions are not involved in the migration.
$DAI transitions to USDS under Sky ecosystem review
The migration is part of MakerDAO’s broader transformation to the Sky ecosystem, which introduces USDS as the stablecoin successor.
While USDS maintains a 1:1 peg to the US dollar and remains collateralized, the shift represents a structural evolution in the way the protocol works.
$DAILong considered one of the foundational assets of DeFi, it played a central role in early decentralized finance by offering a cryptocurrency-backed alternative to centralized stablecoins.
The move to USDS marks a new phase as the protocol adapts its design and infrastructure to remain competitive in a more mature, regulated market environment.
Market data shows that migration is already underway
Recent data indicate that the transition is not only planned, but is already unfolding on a large scale.
USDS currently has a market capitalization of over $11 billionwhere the circulating supply closely matches the total supply. This suggests that liquidity has already been deployed across the ecosystem.
Trading activity has also risen sharply, with daily volume rising sharply in recent sessions. This points to active migration flows and increasing usage as users switch $DAI to the new token.
Despite the shift, the USDS has maintained a stable peg near $1, indicating that the migration is taking place without any immediate disruption to price stability.
Final summary
- Coinbase’s support for the $DAI-to-USDS migration signals that the transition is entering an execution phase, with exchanges beginning coordinated conversions.
- Market data shows that USDS is already operating at scale, reinforcing this shift $DAI is actively underway rather than theoretical.