Since stablecoins are designed to copy certain currencies 1:1, minting more and more stablecoins (if not backed up 1:1 with the currency it represents) could give the owner more power to buy more cryptocurrency or trade-in for real currency. With that, the total supply of USDC lies at just 38.77 billion while the total supply of USDT comprises a whopping 77.58 billion.
77.58 Billion USDT in Circulation
Wu Blockchain tweeted out that statistics coming from THE BLOCK show that there is 50% USDC compared to USDT. With that, the total supply of USDT is at 77.58 billion stablecoins, while USDC only has 38.77 billion stablecoins.
Tether has dipped its hands in hot water a few times before, with the most recent being a US senator asking for better transparency regarding how the stablecoin works. To explain, Tether, or USDT, came into scrutiny due to concerns regarding the whereabouts of $73 billion in investor funds that are backing the value of the digital USDT, according to the story by CityAM.
According to the statistics of THE BLOCK, the current total supply of USDC is about 50% of USDT, the total supply of USDC is about 38.77 billion, and the total supply of USDT is about 77.58 billion. pic.twitter.com/YEkWQRy9RE— Wu Blockchain (@WuBlockchain) December 2, 2021
Concerns Regarding Tether
A US senator, Sherrod Brown said that stablecoins give investors "protection risks" and "raise several market integrity concerns." Tether has long been probed regarding the location of its reserve funds.
Should Tether's claims regarding the 1-1 reserve ratio to fiat and its USDT, this would mean they would have $7.6 billion in deposits, making them one of the 50 largest banks in the United States-if Tether was considered a licensed bank.
New York Court Orders Tether to Report Location of Its Reserves
Tether was previously ordered by a New York court to report to the authorities the location of its reserves every quarter. This was after they were sued for lending out funds from investors to crypto businesses in an attempt to try to conceal their losses allegedly.
Tether agreed to a settlement of $18.5 million to settle the suit regarding accusations of trying to cover up to $850 million in losses due to its partnership with Bitfinex. As per the latest financials, Tether claims to store $30 billion in Commercial Paper while $15 billion is stored in Treasury Bills.
Tether Last Reported $45 Billion Stored
This, however, would mean that Tether only has $45 billion in stored while having 77.58 billion in circulation. To add, Brown demanded that Tether give a response to his queries by Dec. 3.
According to the article by BGR, Tether is issuing a digital US dollar cryptocurrency using the same name but without ties to the US government. The stablecoin is supposedly being pegged to the dollar, so regulators are becoming increasingly concerned about it.
As per BGR warnings, should Tether collapse, this could have huge repercussions towards the whole crypto landscape and could even impact the financial system itself.
This article is owned by Tech Times
Written by Urian B.