Tether (USDT) has gone from being a breakaway cryptocurrency to the industry’s main crutch over the past seven years, according to a new report.
Essentially, USDT is a bridge between traditional currencies like the US dollar and decentralized digital currencies that operate on open blockchain networks.
The independent crypto outlet Protos provided a detailed look at the most popular stablecoin and the liquidity providers they supply to cryptocurrency platforms.
According to the report, the USDT issued will be mainly purchased by just two market makers. Between 2014 and October 2021, Alameda Research and Cumberland were projected to receive $ 60.3 billion in USDT, which is nearly 55% of the total ever outbound volume. According to Protos, the closest competitor has minted a few hundred million USDT.
Alameda Research, led by 29-year-old cryptocurrency billionaire Sam Bankman-Fried, earned $ 36.7 billion, or nearly a third of all tether produced. Cumberland Global, the world’s largest provider of crypto liquidity, ranks second at $ 23.7 billion. Cumberland is a subsidiary of DRW Holdings founded in 1992 and is considered one of the world’s largest financial traders.
Protos states that Tether’s Treasury Department transferred $ 36.7 billion USDT to Alameda Research, of which $ 31.7 billion (86%) was received in the last 12 months. This figure is roughly equivalent to 37% of the total USDT outbound volume.
According to the report, Tether sent over $ 30.1 billion (87%) of Alameda’s USDT to its cryptocurrency and derivatives exchange, FTX. However, Alameda also has wallets on a variety of different cryptocurrency exchanges. The company raised $ 2.1 billion (6%) on Binance, $ 1.7 billion (5%) on Huobi, and $ 115 million on OKEx. The remaining $ 705 million was sent to non-exchange addresses.
Cumberland, on the other hand, received $ 23.7 billion in USDT. Last year alone, Tether’s Treasury received $ 17.6 billion (74%). That number represents 22% of the total USDT outbound volume ever recorded.
Protos points out the importance of Cumberland as a source of liquidity and market maker for Binance, which has been on the exchange since at least the beginning of 2019. Tether has Cumberland spent $ 18.7 billion (79%) in USDT to Binance, with the remainder going to other exchange platforms.
The liquidity provider raised $ 131.5 million (less than 1%) on Poloniex, $ 9 million on Bitfinex, and another $ 30 million on Huobi and OKEx.
Tether remains the world’s largest stablecoin by market capitalization. However, the company’s token has recently been reviewed by regulators. As reported by Cointelegraph, the U.S. Commodity Futures Trading Commission on October 15 fined sister crypto companies Tether and Bitfinex totaling $ 41 million and $ 41 million respectively.