- Tether CTO Paolo Ardoino has addressed the rumors surrounding the depegging of the USDT stablecoin.
- The rumors started after crypto traders noticed USDT and other crypto assets trading at discount on Binance.US.
- Ardoino clarified that the discount was likely due to a lack of market makers willing to deal with Binance.
Paolo Ardoino, the Chief Technology Officer of stablecoin giant Tether, recently took to Twitter to address concerns surrounding its flagship USDT product. The issue stemmed from USDT trading at a significant discount on Binance.US, leading to speculation among online crypto circles about a potential depegging.
As the world’s largest stablecoin, the rumors of a potential de-peg for USDT raised eyebrows among crypto traders globally. With a market capitalization of over $83 billion and a 24-hour trading volume of more than $22 billion, the Tether USD stablecoin is a crucial part of on and off-ramps for several centralized crypto exchanges.
When crypto traders noticed USDT being offered for $0.88 on Binance instead of its dollar peg dictated $1, they raised the alarm over a possible de-peg. However, the discount was only seen on Binance.US. USDT was trading at its usual price on every other crypto exchange. Some traders even attempted to exploit the situation through arbitrage.
Tether CTO Paolo Ardoino told his followers on Twitter that the difference in price was probably due to a lack of crypto market makers willing to interact with Binance’s American arm due to its ongoing regulatory and legal issues. He pointed out that on the international Binance exchange, USDT was trading 1 basis point above the usual $1 price.
Ardoino also stated that Tether was unable to do anything to rectify the situation since it was only in charge of USDT’s primary market. Market making activities for the stablecoin’s secondary market was left to arbitrageurs and market making professionals. Another user on crypto Twitter added that the price difference could also be attributed to Binance.US’ decision to deactivate a significant fiat on-ramp when it suspended USD deposits.
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