Tether Treasury Sends USDT Directly to Kraken
In an unprecedented transaction, the Tether treasury wallet sent about 1.7 million coins, a relatively small amount, to the Kraken exchange.
The Tether (USDT) treasury wallet, usually used only to add liquidity to Bitfinex, has performed an unusual transaction. The wallet sent funds directly to Kraken, the only exchange that has USDT-to-fiat markets.
In the past months, since the Tether crisis at the end of October, leading exchanges have been quietly shedding their USDT liquidity. One of the ramps to abandon USDT positions have been alternative stablecoins, which allow a path to convert back to fiat.
However, the exact reason for sending funds to Kraken is unknown. The importance of USDT pairs also remains unchallenged, as the stablecoin takes up more than 25% of all crypto market volumes. Usually, around 50% of all Bitcoin (BTC) trading relies on USDT pairs, and some altcoins also see significant support from the stablecoin.
Kraken’s USDT balance grew in the past month, and selling pressures have abated for now. USDT has also recovered its dollar peg.
The transfer of USDT also coincides with the opening of margin trading markets in XRP (XRP) and Bitcoin Cash (BCH). With this, Kraken already has eight margin trading markets that depend on USDT.
However, the Tether company may be researching a new way of injecting USDT into the ecosystem, this time directly to customers. The transaction, coming directly from the treasury, was sent to a customer’s wallet on Kraken, according to Twitter commenters.
This would mean the Tether treasury is not directly involved in USDT trading or selling. Instead, USDT may also face the challenges of 2019 in that it needs to seek new ways of adoption. The Tether treasury wallet is closely scrutinized by the community for signs of activity, and interventions are viewed with skepticism.
In the past days, some saw Tether’s influence over BTC price movements. BTC jumped from $3,600 toward the $3,800 range on December 28, showing a fast appreciation of hundreds of dollars within a short time. Afterward, BTC stabilized around $3,816.33 as of December 31.