Tether (USDT) Treasury Sends 10.9M Coins to Kraken

At the start of 2019, the Tether treasury began to disburse funds, with tranches of coins that end up on Kraken.

Tether (USDT) continues to send funds to Kraken, with the latest transactions totaling 10,990,000 coins. As in previous tranches, the coins were moved to an intermediary address, then to one of the Kraken wallets.

At the same time, Tether’s official wallet is once again fully functional so that it can process deposits, as well as redemptions, by sending the funds to a bank account.

It is unknown who is absorbing the USDT from the treasury. In theory, USDT could be bought by private placements of funds, yet the exact round sums are mystifying. There are also small-scale transactions of a few hundred thousand USDT, but those end up on Bithumb.

In theory, it is possible to buy USDT at $1, and later attempt to trade it at an effective price of a bit above $1. But the real reason for the transactions is still mystifying to the crypto community:

https://twitter.com/Double_Irish_D/status/1082734986740916224

On Kraken, there is no panic-selling, and USDT trades at $1.0177.

Since mid-December, USDT volumes have picked up again, on active days seeing more than $6 billion equivalent in turnover, especially in Bitcoin (BTC) markets. Despite the tremors in late October, the stablecoin remains extremely influential.

Stablecoins, especially dollar-pegged ones, have become a major trend, but skeptics also see them as skewing the market. Recently, Binance decreased its exposure to USDT by diminishing its wallet, while opening up markets for a mix of newer stablecoins.

The USDT asset, however, spreads to other exchanges, and remains influential on Bithumb and Poloniex.

Currently, there is an arbitrage opportunity with a BTC price premium for the USDT market compared to dollar markets of around $110.74. The BTC price on Kraken, based on fiat markets, is also much lower. This also means that traders can sell USDT for USD, then buy BTC at a lower price, sell it for USDT and repeat the trade. This possibility may also explain the inflow of USDT funds into the European exchange.

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