Tether, the issuer of the largest dollar-pegged stablecoin by market capitalization has recently seen its Bitcoin reserve grow by upwards of half a billion dollars
Cryptocurrency issuer Tether has seen its Bitcoin reserves grow by over half a billion dollars in a single day, amid concerns over potential delistings due to the new regulatory framework for European digital assets.
On December 30, Tether’s Bitcoin wallet received two major transfers, according to data from Arkham Intelligence. The first transfer saw 775.688 BTC (around $71 million at the time) being sent to the wallet, followed by a second transfer of 7,628.9 BTC (worth over $705 million) on the same day.
Both transactions were made by major cryptocurrency exchange Bitfinex, marking the first major transactions involving Tether’s wallet in over 9 months. The significant amount—upwards of half a billion dollars—sent to Tether in a single day highlights the growing scale and influence of cryptocurrency transactions in the market.
With the addition of the $777.4 million sent to Tether on December 30 by Bitfinex, the company now ranks as the second-largest private Bitcoin holder. In total, Tether now holds 90,083 BTC, worth around $8,480,644,232—only behind Block.One, which holds over 140,000 BTC.
However, despite being the largest stablecoin in the market, Tether has faced challenges recently due to the new regulatory framework in Europe, known as Markets in Crypto Assets (MiCA). USDT is deemed non-compliant under MiCA guidelines, which led major exchange Coinbase to remove the dollar-pegged currency from its platforms to comply with the new framework.
To become compliant, Tether would need to acquire an “e-money license” from the European Union. MiCA entered its 18-month-long transition period on December 30, which could give the company some additional time to become compliant.
The company has already been investing in backing StablR, a European stablecoin issuer with an e-money license, to help it quickly enter MiCA. This development is still ongoing.
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