Jul 1, 2022

USDT holders have withdrawn $10 billion into fiat since the beginning of May

USDT holders have withdrawn $10 billion into fiat since the beginning of May

Since the beginning of May, Tether Holdings Limited has bought $10 billion worth of tokens from USDT holders, writes The Guardian.

Edition notes that users began to go to fiatagainst the background of the collapse of the algorithmic stablecoin UST and the LUNA token. On May 12, the price of USDT briefly lost parity against the US dollar - then the issuer redeemed $600 million worth of assets in a day, according to Tether CTO Paolo Ardoino.

The media indicates that over the past few daysTether has redeemed USDT for a total of $2.5 billion. At the time of writing, the stablecoin is trading at around $0.99. The capitalization of the asset exceeds $73 billion, according to CoinGecko.

USDT holders have withdrawn $10 billion into fiat since the beginning of May

USDT holders have withdrawn $10 billion into fiat since the beginning of May

Coinbase USDT/USD hourly chart. Data: Trading View.

Recall that in the first quarter of 2022, the issuerUSDT cut commercial securities reserves by 17%. Until the end of June, Tether Holdings Limited plans to reduce the amount of collateral in these assets by another 20%.

In May, Circle, the operator of the second-largest stablecoin, USD Coin, began disclosing information about the status of reserves on a weekly basis.