Key facts
- Tether's USDT stablecoin is trading at a premium on Indian crypto exchanges.
- The premium ranges from 7% to 10%.
- Executives attribute the premium to supply-demand imbalances.
- Thin local liquidity is also cited as a reason for the premium.
- The situation follows an enforcement action by India's financial-crime agency.
Tether's USDT stablecoin is currently trading at a premium ranging from 7% to 10% on Indian cryptocurrency exchanges. Executives attribute this significant price difference to imbalances in supply and demand, coupled with thin local liquidity. This situation has arisen in the wake of an enforcement action initiated by India's financial-crime agency. The action appears to have disrupted the normal flow and availability of USDT in the Indian market, leading traders to pay a higher price to acquire the stablecoin. The premium indicates a scarcity of USDT relative to demand within India, likely driven by the regulatory scrutiny and its subsequent impact on market participants' ability or willingness to supply the stablecoin.