Moreover, in the cryptocurrency world, stablecoins can be seen as cryptocurrencies whose values are tied to some real-world assets, for example the United States dollar, gold, etc.
Because of the nature of these stablecoins, they can be used to perform transactions at a stable rate, unlike Bitcoins, whose price is quite dynamic.
Tether with its currency as USDT is a popular cryptocurrency (a stablecoin) of which the goal for its existence is to make cryptocurrency transactions stable at every moment.
Many traders and investors who intend to avoid the volatility of the crypto market, often park their portfolio in USDT.
How Does Stablecoins Work?
A stablecoin that has a fixed price serves as local currency in the cryptocurrency world. Stablecoins worked under the principle of collateralization, this simply means that the worth of stablecoins is being tied to other assets.
The reason why the price of stablecoins is fixed, is because the creators of this cryptocurrency engage collateral or reserve with companies that approve such cryptocurrency. For this, the price of stablecoins will remain the same as long as the collateral exists.
Meanwhile, stablecoins are being regulated by government agencies, this is to ensure that organizations don’t represent the details of stablecoins to investors.
Reasons why USDT is the most popular stablecoin
One of the core reasons why USDT is popular is because it has a simple and easy medium of exchange. Also, it has an effective gap when compared to fiat and other cryptocurrencies. Over the years the price of USDT remains constant even when the price of other cryptocurrencies fluctuates.
Being the first stablecoin, USDT has become the largest stablecoin with a marketcap over $80 billion.
Top 10 USDT Buyers
Below are top companies that invested in USDT because of its popularity and how stable the price is:
Alameda Research is a popular trading company that has expert traders from Wall Street as well as Silicon Valley. The job of these experts is to ensure liquidity in the crypto market globally. Alameda Research trades on altcoins, stablecoins, and major coins.
The current CEO of this company is Sam Trabucco who graduated from MIT in 2015 with a degree in math and computer science.
Alameda Research Company was founded by Sam Bankman-Fried. This company generates revenue through its daily trading in diverse cryptocurrencies, including stablecoins.
Cumberland Global is a cryptocurrency trading company that is specialized in crypto-asset within DRW. This trading company provides features that financial institutions, traders, and investors need to gain more opportunities in the crypto-assets space.
One of the goals of this trading company is to ensure that the world continues to grow in a cashless economy. Cumberland Global is among the top trading companies that buy USDT stablecoins.
This company uses both physical and electronic means to ensure that information is kept safe from unauthorized access.
iFinex Inc which is the parent company for Bitfinex is a cryptocurrency exchange company that is registered in the British Virgin Islands. The CEO of this company announced in the news that they are looking for a compatible home for their two companies “Bitfinex and iFinex”.
Although this company emerged as a peer-to-peer bitcoin exchange platform that also offers digital assets trading assets to their users globally, they are currently top buyers of USDT stablecoins.
Because of the trust people build in this company, they were able to retain a large number of customers who utilize the features that were made available in this company for their trading. In as much as this, in the past years, some of their customers lamented the loss in several incidents.
Nexo is another cryptocurrency trading platform that allows its users to earn some interest on their deposits in the company’s account. This company is listed among the top trading companies that buy USDT stablecoins. Nexo allows users to borrow cash, stablecoins, or other cryptocurrencies even without using a credit check.
The co-founder of this amazing trading company is Antoni Trenches. Nexo was founded in the year 2017, and it is based in London, England. By using Nexo, users are allowed to borrow from $50 to about $2 million. Being one of the top buyers of stablecoins, a lot of users have built trust with this company as they even allow investors and traders to borrow and pay later.
Meanwhile, their borrowing is not limited to only once. This means that you can keep borrowing until you hit your maximum limit.
Heka being a market maker bought USDT worth about $1.5 billion just from the Tether alone. About $1.1 billion of these purchases were distributed in the year 2021 through the number one cryptocurrency exchange platform known as Binance.
Jump Crypto is a cryptocurrency trading company that purchases stablecoins and also they allow users to trade directly from their platform. Some years back they lost over $300 million from a hack from the Wormhole blockchain protocol.
Jump Crypto is regarded as one of the major players in the crypto asset space. This is because of their steady purchases in the Tether USDT stablecoins. They are one of the founders of Pyth. Pyth is a platform that supplies updates on asset prices which is being repeated almost every 400 milliseconds to the Solana blockchain.
As of August 2021, the Jump Crypto trading platform bought Certus One, which helped the company to create more features in Wormhole. Hendrik Hofstadt who is the CEO of Jump Crypto trading platform is also the co-founder of Certus One, which was merged to serve users the best when it comes to digital assets.
Three arrows capital
The Three arrows capital is a popular cryptocurrency hedge fund that was founded in the year 2012 by an entrepreneur by the name of Su Zhu and Kyle Davies.
In the previous years, this global company bought Tether USDT stablecoins that were worth over $400 million.
Although certain risks are involved while being a liquidity partner in a hedge fund, it is more suitable for sophisticated investors who are ready to bear any risk that resulted from their investment.
At Delchain, their goal is to bridge the gap between digital financial services such as the traditional banks and the cryptocurrency world of blockchain.
Some of their services include trading, which is regulated by blockchain, and asset management. They buy a good percentage of USDT stablecoins which are available for their users.
The Blockchain which owns the majority of all the cryptocurrency wallet addresses render their services in over 200 countries of the world. Being an exchange platform that generates wallet addresses for other exchange platforms, they have more advanced features than every other cryptocurrency exchange platform. Blockchain is among the top buyers of USDT stablecoins.
Renrenbit is a secured and transparent trading platform that utilizes some digital bank features which are integrated into the blockchain. Renrenbit bought a decent amount of USDT stablecoins which their users can trade on any coin of their choice. Traders and investors that don’t like taking a high risk can opt for USDT stablecoins while other advanced traders can trade other fiat coins.
USDT being one of the top stablecoins has gained the attention of many trading companies and today almost all of the crypto ecosystem is heavily dependent on USDT for facilitating liquidity and ease of trade.
The top ten USDT buyers we discussed above are popular companies we decided to review. Other exchange companies buy USDT stablecoins also.
Written by: Narender Charan