USDT to USDC Transition: Cherry Servers’ Plan for Compliance & Continuity

Cherry Servers is a bare-metal hosting provider based in Lithuania, offering high-performance infrastructure solutions to clients worldwide. Specializing in the crypto and web3 sectors, Cherry Servers provides dedicated and virtual server solutions, technical support, account management, and API services.

Cherry Servers currently accepts cryptocurrency payments exclusively through CoinGate, which supports USDT, among other currencies. However, due to new EU regulatory constraints, CoinGate is unable to process USDT payments, making it necessary to transition to USDC. USDC is fully compliant with the Markets in Crypto-Assets Regulation (MiCAR) and is widely supported across multiple platforms.

#Why the change?

Understanding the regulatory constraints

Currently, Cherry Servers accepts cryptocurrency payments exclusively through CoinGate, supporting multiple digital assets, including USDT. However, due to new EU regulations, CoinGate can no longer process USDT payments, making it necessary to transition to a compliant alternative.

#Why USDC?

USDC is a regulated, MiCAR-compliant stablecoin that is stable, transparent, reliable and user-friendly. It is supported worldwide across multiple platforms, offering a smooth experience for our clients. Cherry Servers will continue using CoinGate as our exclusive crypto payment processor, supporting USDC transactions on six different blockchain networks:

• Arbitrum
• Binance Smart Chain (BSC)
• Ethereum
• Polygon
• Solana
• Tron (until February 2025)

#What this means for our clients

Cherry Servers understands that our clients fall into different segments, each requiring tailored guidance on transitioning to USDC.

#1. Non-EU clients holding USDT on any chain

For clients outside the EU, the recommended approach is to use a centralized exchange to convert USDT to USDC:

• Create an account on a reputable exchange like Binance, Coinbase, or Kraken.
• Complete the required KYC process if not done previously.
• Deposit USDT into the exchange, ensuring the correct network selection.
• Locate the USDT/USDC trading pair and execute the conversion.

#2. EU clients holding USDT on a CoinGate-supported chain (excluding Tron)

For EU clients using Ethereum, Polygon, or other supported chains, a decentralized exchange (DEX) like Uniswap or PancakeSwap can be used to convert USDT to USDC:

• Connect a compatible wallet (MetaMask, Phantom, WalletConnect, etc.).
• Locate the USDT/USDC pair and execute the trade.

#3. EU clients holding USDT on unsupported chains (e.g., Tron)

As USDC will no longer be supported on the Tron chain from February 2025, clients using Tron-based USDT must bridge their funds to a supported network before converting them to USDC:

• Use a bridge service such as Hyperlane, Layerswap, or Meson to transfer USDT from Tron to a supported network.
• Connect a compatible wallet (MetaMask, Phantom, TronLink, etc.).
• Select the origin and destination networks and execute the transaction.
• After bridging, use a decentralized exchange to swap USDT for USDC.
• Proceed with the usual Cherry Servers payment flow.

#Troubleshooting and common mistakes

To ensure a seamless transaction, keep the following in mind:

• Wrong network: Always select the correct network when bridging or swapping stablecoins.
• Insufficient gas fees: Transactions require gas fees. Ensure you have enough native tokens on both the origin and destination chains.
• Incorrect addresses: Double-check stablecoin issuer and destination addresses before executing transactions.

#Key messages to our clients

#1. Transparency

This change is driven by EU regulations affecting all crypto payment processors, including CoinGate.

#2. Reassurance

Cherry Servers is taking every step to ensure a seamless transition for all users.

#3. Simple transition process

We provide multiple ways for clients to transition from USDT to USDC easily, with clear instructions and 24/7 support available.

#Timeline

To avoid payment disruptions, we strongly encourage clients to move to USDC as soon as possible. A hard stop on USDT payments will be enforced on April 1, 2025.

#Support

To encourage a smooth transition, Cherry Servers is offering:

• Enhanced customer support to assist with any transaction-related queries.
• Monitoring of transaction trends to ensure all clients successfully migrate to USDC.

For assistance, clients can reach out to Cherry Servers’ support team through their preferred communication channels.

#Conclusion

At Cherry Servers, we prioritize secure and efficient payment solutions for our clients worldwide. By transitioning from USDT to USDC via CoinGate, we ensure you an uninterrupted service while complying with EU regulations. We appreciate your support and are here to help you every step of the way.