{"id":238828,"date":"2022-05-23T22:30:19","date_gmt":"2022-05-23T21:30:19","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=238828"},"modified":"2022-05-23T22:41:49","modified_gmt":"2022-05-23T21:41:49","slug":"tether-remains-unshaken-despite-10-billion-withdrawals-in-2-weeks","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/tether-remains-unshaken-despite-10-billion-withdrawals-in-2-weeks\/","title":{"rendered":"Tether remains unshaken despite $10 billion withdrawals in 2 weeks"},"content":{"rendered":"<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Crypto traders withdrew around $10 billion from Tether USDT in the last two weeks as talks of <a href=\"https:\/\/cryptoslate.com\/rumors-run-riot-as-ust-collapses-amid-yellen-report-on-stablecoins\/\">increased <\/a><\/span><span style=\"font-weight: 400;\"><a href=\"https:\/\/cryptoslate.com\/rumors-run-riot-as-ust-collapses-amid-yellen-report-on-stablecoins\/\">regulatory scrutiny<\/a> for stablecoins<\/span><span style=\"font-weight: 400;\"> continue to grow.\u00a0<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">CryptoSlate <\/span><strong><a href=\"https:\/\/cryptoslate.com\/coins\/tether\/\">data<\/a><\/strong><span style=\"font-weight: 400;\"> shows that the circulating supply of USDT dropped to $73.3 billion on Monday from the $84.2 billion on May 11.<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">On May 20 alone, on-chain data shows that traders withdrew $1 billion from Tether. The massive withdrawal was fueled by Terra blockchain <\/span><strong><a href=\"https:\/\/cryptoslate.com\/coins\/terrausd\/\">UST<\/a><\/strong><span style=\"font-weight: 400;\"> and LUNA collapse.<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Following UST's crash, USDT, alongside several stablecoins, <\/span><strong><a href=\"https:\/\/cryptoslate.com\/hold-on-to-your-hats-tether-usdt-shows-signs-of-de-pegging-on-exchanges\/\">temporarily lost its peg<\/a><\/strong><span style=\"font-weight: 400;\">. This brought much attention to this crypto class and how &#8220;stable&#8221; they were.<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tether, in a recent <\/span><a href=\"https:\/\/tether.to\/en\/understanding-tethers-peg-and-reserves\/\"><span style=\"font-weight: 400;\">blog post<\/span><\/a><span style=\"font-weight: 400;\">, wrote that its de-pegging across crypto exchanges does not mean that USDT has broken its peg; instead, the de-peg shows that.<\/span><\/p>\n<blockquote>\n<p style=\"font-weight: 400;\"><strong>&#8220;There is more demand for liquidity than exists on that exchange's order books.&#8221;<\/strong><\/p>\n<\/blockquote>\n<h2><b>Tether's USDT 1:1 claim<\/b><\/h2>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tether had earlier claimed that USDT has a one-to-one dollar backing in a bank account but later changed its tune to say it uses other assets such as commercial paper and even digital tokens as collateral. It revealed this when it <\/span><strong><a href=\"https:\/\/cryptoslate.com\/bitcoin-jumps-4000-as-bitfinex-and-tether-settle-with-new-york-court\/\">settled<\/a><\/strong><span style=\"font-weight: 400;\"> with authorities in New York.<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The firm must publish its reserves every quarter as part of the settlement. The latest attestation report shows it has reduced its commercial paper holdings while increasing US treasury bills. The company also said that it is now holding foreign government debt.<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Although most of the assets in the report are stable, there is around 11% of its investment in &#8220;corporate bonds, funds, and precious metals&#8221; and &#8220;other investments (including digital tokens).&#8221;<\/span><\/p>\n<p>Overall, the <strong><a href=\"https:\/\/cryptoslate.com\/tethers-82-4b-reserves-exceed-market-cap-of-usdt\/\">report<\/a><\/strong> indicates that its reserve exceeds the amount required to redeem the digital tokens issued.<\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">However, Patrick McKenzie, a fintech commentator, <\/span><a href=\"https:\/\/www.kalzumeus.com\/2022\/05\/20\/tether-required-recapitalization\/\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> that Tether's account shows it has $162 million more in its reserves than its tokens. But some of its investments, including that in the Celsius network, are performing poorly due to the bearish nature of the crypto market.\u00a0<\/span><\/p>\n<p>In a statement, the Tether's chief technology officer, Paolo Ardoino, said,<\/p>\n<blockquote>\n<p style=\"font-weight: 400;\"><strong>&#8220;Tether has maintained its stability through multiple black swan events and highly volatile market conditions and, even in its darkest days, Tether has never once failed to honour a redemption request from any of its verified customers.&#8221;<\/strong><\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Crypto traders withdrew around $10 billion from Tether USDT in the last two weeks as talks of increased regulatory scrutiny for stablecoins continue to grow.\u00a0 CryptoSlate data shows that the circulating supply of USDT dropped to $73.3 billion on Monday from the $84.2 billion on May 11. On May 20 alone, on-chain data shows that [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":238889,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76747,107,32631],"tags":[76896,72860],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tether remains unshaken despite $10 billion withdrawals in 2 weeks<\/title>\n<meta name=\"description\" content=\"Tether says the $10 billion withdrawal proved that the company is the most resilient in crypto and in traditional finance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/tether-remains-unshaken-despite-10-billion-withdrawals-in-2-weeks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tether remains unshaken despite $10 billion withdrawals in 2 weeks\" \/>\n<meta property=\"og:description\" content=\"Tether says the $10 billion withdrawal proved that the company is the most resilient in crypto and in traditional finance.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/tether-remains-unshaken-despite-10-billion-withdrawals-in-2-weeks\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-23T21:30:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-23T21:41:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/05\/tether.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/tether-remains-unshaken-despite-10-billion-withdrawals-in-2-weeks\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/tether-remains-unshaken-despite-10-billion-withdrawals-in-2-weeks\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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