USDT holders have withdrawn $10 billion into fiat since the start of May

Since the start of May, Tether Holdings Limited has redeemed tokens from USDT holders worth $10 billion. The Guardian reports this.

The publication notes that users turned to fiat amid the collapse of the algorithmic stablecoin UST and the LUNA token. On May 12, the price of USDT briefly lost parity with the US dollar — at that time the issuer redeemed assets worth $600 million, according to Tether CTO Paolo Ardoino.

The media notes that over the past few days Tether redeemed USDT totaling $2.5 billion. At the time of writing the stablecoin trades at around $0.99. The asset’s market cap stands above $73 billion, according to CoinGecko.

Earlier, in the first quarter of 2022, the issuer USDT reduced its reserves in commercial papers by 17%. By the end of June, Tether Holdings Limited plans to reduce the backing for these assets by another 20%.

In May, Circle, the operator of the second-largest stablecoin USD Coin, began disclosing information about reserve status on a weekly basis.

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