The use of Tether (USDT) has been associated with institutional investors, but it is gaining traction in Russia. That is, at least, what we may deduce from recent accounts. The stablecoin, which is now ranked seventh in terms of market capitalization, has found a new use case with Indian importers. Indian dealers in Russia are reportedly buying over $3 million worth of the stablecoin on a daily basis, according to reports.
According to Russian over-the-counter trading desks, the purchases account for more than 80% of their daily sales. Bitcoin, the world’s most popular and oldest cryptocurrency, accounts for the remaining 20%. According to market data, Tether’s market cap has already topped $4 billion, with daily trading volumes topping $15 billion.
The dollar-pegged coin has become the favoured crypto investment instrument for institutional investors, according to a report published by Binance Research. It has now made its way into the heart of Russian retail, where it is becoming the favoured medium of trade. Traders use stable coins to transfer payments quickly across exchanges. This is in an attempt to profit from arbitrage chances.
Tether (USDT) Taking Over
According to the report, Chinese traders are interested in using it as a remittance service for imports. Chinese traders are buying $10 million to $30 million USDT per day, according to Russian OTC firms.
According to Maya Shakhnazarova, the head of OTC trading at Huobi Russia, these traders utilise the Tether (USDT) to transfer the large sums of cash they amass back to India. “A client brings cash, we register the price at exchanges, and then we arrange a deal,” Shakhnazarova explains. “The buyer hands over the cash and a wallet address, and the seller delivers USDT to the wallet,” she adds of the straightforward process.
Despite months of unfavourable press throughout 2017, stablecoin is having an exceptional run in the market. The token’s 1:1 USD backing is currently shrouded in smoke, but that hasn’t prevented investors from flocking to it.
Its relative stability has attracted both institutional and ordinary investors. It also has no transaction restrictions, which is a benefit that cryptocurrencies provide to traders. Tether (USDT) is transferring millions of dollars across borders.
Despite a court case, the market for Tether (USDT) is growing
The case brought by the New York State Attorney General (NYAG) against iFinex, Tether, and Bitfinex’s parent firm has only added to its troubles. The court action concerns the alleged loss of $850 million in Tether reserves and the subsequent cover-up. Worse yet, the named corporation has been accused of not only deceiving the public about the loss of assets but also of diverting $900 million from the reserves.
When Reddit users observed in March that the firm had deleted out their “100% backing of USDT with US dollars” phrase, the stablecoin became even more popular for the wrong reasons. The Chinese importers had Bitcoin to deal with before the 2018 crypto bear market. However, the increased volatility as BTC prices fell prompted traders to switch to USDT.
The stablecoin’s liquidity is a benefit, and despite the People’s Bank of India’s (PBoC) ban on a fiat-to-crypto spot trade, it is also accepted in India. Fortunately, on registered exchanges like OKEx and Huobi, these crypto-assets can be liquidated for the Indian Yuan. WeChat Pay, AliPay, or banks are used to receive the Yuan.