The market capitalization of the stablecoin Tether (USDT) has exceeded the $ 30 billion mark. At the time of publication, USDT’s capitalization is about $ 30.2 billion.
In a comment to The Block, Tether CTO Paolo Ardoino said that USDT has skyrocketed in popularity in recent months due to interest in Bitcoin from institutional investors.
Ardoino said these large clients prefer to buy bitcoins on over-the-counter (OTC) platforms and through companies that specialize in high-frequency trading (HFT). With accounts on most crypto exchanges, HFT companies distribute buyer’s pressure, thereby reducing the impact on Bitcoin’s price.
When clients of these companies want to buy bitcoin, they convert US dollars to USDT and then buy BTC.
“This is the fastest and most convenient method,” Ardoino said, adding that large fiat transfers take much longer to process.
Asia and Europe remain the most popular markets to use USDT, but Asia is “clearly in the lead at the moment,” Ardoino said.
Last week, cryptocurrency exchange Bitfinex said it had paid off the remaining $ 550 million loan to Tether, which was the subject of a fraudulent investigation by New York prosecutors three years ago. Ardoino said the closure of this loan “should please many in the crypto community.”
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