$2.8b USDT recipient deposits Tether on crypto exchanges
Crypto trading firm and market maker Cumberland moved millions in USDT to exchanges after receiving $2.8 billion from Tether’s treasury over three months.
Per Arkham Intelligence, Cumberland has deposited up to $120 million of Tether’s stablecoin USDT into crypto exchanges like Coinbase, OKX, and Kraken in the last 24 hours. Tether’s treasury sent at least $155 million to Cumberland in the same timeframe.
The reasons for the transactions are unknown; however, there are possibilities posed by speculators. First, Cumberland may be deploying USDT on exchanges to acquire cryptocurrencies for future profits, given the current hype in the market.
Crypto’s fear and greed index reached its highest point since 2021 as crypto.news reported.
Alternatively, the firm could be scooping choice digital assets for market-making purposes. Firms like Cumberland operate under a business mode that provides liquidity in cryptocurrency markets, ensuring that order books are filled and investors can instantly buy or sell tokens.
Whatever the case, crypto participants typically send USDT and other stablecoins to exchanges when they plan to buy virtual currencies. It usually indicates bullish sentiment in the market and the expectation of higher prices.
Stablecoins act as a gateway into crypto as these tokens are commonly pegged to sovereign currencies like the U.S. dollar. These coins can be swapped for fiat via on and off-ramps, allowing news users and fresh capital to enter the digital asset market.
Tether’s stablecoin is the largest of its kind, boasting a market cap of over $94 billion. The token’s market cap is up some $28 billion since last year according to Coingecko.
