The amount of Tether tokens in circulation surpasses $100 billion

According to Tether, the total value of its dollar-pegged stablecoins has surpassed $100 billion, as the cryptocurrency firm announced on its website on Monday. Stablecoin, distributed by Tether, is intended to keep its value at $1 per unit. It is frequently used as a means of transferring cryptocurrency funds without being subject to changes in the value of other cryptocurrencies, such ether and bitcoin. According to the business, it keeps its dollar peg in place by keeping dollar-based reserves equivalent to the amount of cryptocurrencies it has produced.

 

Even though the dollar-pegged Tether token is set at $1, it has recently gone as high as $1.0020, indicating a rise in interest from investors who are utilizing Tether to swap fiat money for cryptocurrency and are betting on a rising Bitcoin. “Traders were prepared to pay more for tether to ensure that their orders were fulfilled,” stated Justin D’Anethan, the head of business development for Asia-Pacific at Keyrock, a company that creates digital assets. “Ironically, tether has always been FUDed (plagued by anxiety about their legitimacy) as they resisted disclosing their reserves and balance sheet for years,” said D’Anethan.

 

“Nonetheless, they’ve been around and stood the test of many volatility events, from 2017 up to now, and an overwhelming majority of cryptocurrency pairs are denominated in USDT -which explains the premium in times of massive bull runs and enthusiasm for the crypto space.” According to CoinMarketCap data, almost $124 billion worth of tether changed hands in the previous day. Banks holding stablecoins have been alerted by US regulators about the possibility of sudden withdrawals, such as when holders rush to convert their tokens back into fiat money. As part of a 2021 settlement with the New York Attorney General’s office, Tether committed to give quarterly reports on its reserves for a two-year period.

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