Tether's Bitcoin Reserve Soars After Bitfinex $777m Transfer

• Tether's Bitcoin reserve grows by upwards of half a billion dollars from Bitfinex transfers
• MiCA regulations prompt Coinbase to delist USDT
• Tether invests in StablR for EU compliance

Tether, the issuer of the largest dollar-pegged stablecoin by market capitalization has recently seen its Bitcoin reserve grow by upwards of half a billion dollars, amidst fears of potential delistings due to the new regulatory framework for European digital assets.

According to Arkham Intelligence, Tether’s Bitcoin wallet received two major transfers on December 30. The first transfer of 775.688 BTC (approximately $71 million) was sent to the wallet, followed by a second transfer of 7,628.9 BTC (worth over $705 million) on the same day.

Major cryptocurrency exchange Bitfnex made both transactions marking the first major transaction involving Tether’s wallet in over 9 months. The significant amount—upwards of half a billion dollars—sent to Tether in a single day has underscored the growing influence and scale of cryptocurrency transactions in the market.

The addition of the $777.4 million sent to Tether on December 30 by Bitfinex further cements Tether as the second largest Bitcoin holding by a private firm. In total, Tether now holds 90,083 BTC worth around $8,480,644,232—only behind Block.One which holds over 140,000 BTC.

Despite being the largest stablecoin in the market, Tether has been put on the spot as of late due to the new regulatory framework in Europe: Market in Crypto Assets (MiCA). USDT is deemed non-compliant under MiCA guidelines, which prompted major exchange Coinbase to delist the dollar-pegged currency from its platforms in order to adhere to the new framework. 

In order to become compliant, Tether needs to acquire an “e-money license” under the European Union. Since December 30, MiCA entered its 18-month-long transition period, which could buy some more time for the firm to become compliant.

The company is already investing in backing e-money licensed European stablecoin issuer “StablR” in order to shortcut its way into MiCA. A development that is still ongoing.

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