In 2020 alone, Tether created $5 billion and most of its tokens went to China
From its creation in 2014 to the end of 2019, Tether has created about 4 billion USDT tokens.
Since each token is supposedly backed by one US dollar, this gave the USDT a market value of $4 billion.
However, in the first 6 months of 2020 alone Tether created 5 billion in tokens.
That is, in 1 semester the company created more tokens than in 5 years of history.
The main stablecoin in the market is associated with Bitcoin trading.
However, according to a revelation made by Sino Capital the reason for the historical printing of USDT would be China.
According to the investigation, the OTC market in China is large and not necessarily connected to Bitcoin.
“The main points we identified in our research were that:
1- The OTC is a huge market in China, much bigger than people think, and that
2- The USDT is the core of this flow,” said Matthew Graham, CEO of Sino Global Capital.
The report also explains that the lack of clear regulation on Bitcoin in China also drives demand for USDT.
“The USDT is a very popular way to enter the market for Chinese investors in the Immediate Bitcoin market, as most exchanges offer a variety of over-the-counter options,” the report says.
So the Sino report also highlights that stablecoin is perfect for serving customers in the crypto market in China.
“After all, the USDT is able to protect Bitcoin’s volatility and is highly liquid, being traded on virtually all Asian exchanges,” the report says.
Moreover, because of its stable value, the Chinese have preferred it for remittance operations.