Tether USDt

<p>Coinone, a major South Korean cryptocurrency exchange, <a href="https://coinone.co.kr/info/notice/2559" rel="noopener noreferrer nofollow">listed</a> USDT, a stablecoin pegged to the US dollar on the platform’s Korean won-denominated market on Thursday (local time). Its listing price was KRW 1,289.</p><p>Tether Limited, the company behind USDT, <a href="https://tether.to/en/transparency/#reports" rel="noopener noreferrer nofollow">asserts</a> that their stablecoin is “backed 100% by Tether’s reserves.” These reserves comprise a variety of real-world assets such as U.S. Treasuries, overnight reverse repurchase agreements, corporate bonds and precious metals. According to <a href="https://coinmarketcap.com/currencies/tether/" rel="noopener noreferrer nofollow">CoinMarketCap</a>, USDT’s market capitalization stands at $89 billion, ranking it third in the cryptocurrency market, just behind Bitcoin and Ethereum.</p><h2 id="header-0">First to list USDT/KRW trading pair</h2><p>Despite the significance of USDT in the cryptocurrency market, Korean exchange users have faced the limitation of not being able to purchase the stablecoin using Korean won, although these exchanges did offer markets denominated in USDT. This limitation has prompted Koreans to turn to foreign cryptocurrency services for acquiring USDT. With Coinone’s latest move, the platform has become the first to facilitate USDT/KRW trading among the nation’s five fiat-to-crypto Korean exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax.</p><p>Regarding this development, Kwon O-hoon, Managing Partner at the law firm Cha and Kwon, told local news outlet <a href="https://decenter.kr/NewsView/29XFRVOKE9" rel="noopener noreferrer nofollow">Decenter</a> that there seem to be no particular legal concerns with the crypto exchange’s engagement in USDT transactions. This perspective stems from the absence of stablecoin regulations in the country.</p><h2 id="header-1">Reducing the Kimchi premium</h2><p>According to Decenter, crypto experts anticipate that the introduction of USDT/KRW trading will help in reducing the Kimchi premium, a term referring to the discrepancy in cryptocurrency prices on South Korean exchanges compared to those in foreign exchanges.</p><p>For instance, according to data from <a href="https://coinness.com/market/kimchi-premium/average" rel="noopener noreferrer nofollow">CoinNess</a>, the average price of BTC on Korean exchanges is around KRW 51,177,250. This is about 2.34% higher than its average price on foreign exchanges, which stands at KRW 50,005,909. This difference means that users on Korean exchanges need to pay an additional KRW 1,171,340 to buy one BTC, compared to what they would pay on international platforms.</p><p>However, the newly added trading pair will streamline transactions between exchanges, making it simpler for investors to engage in arbitrage. This ease of transfer is expected to lead to more balanced pricing across different markets, reducing the Kimchi premium.</p><p>In light of this development, Jo Dong-hyeon, CEO of blockchain company Undefined Labs, said various institutions and blockchain projects will likely find USDT increasingly useful as a store of value, given USDT facilitates easy transfers between different exchanges.</p>

Coinone’s recent addition of USDT/KRW trading pair expected to reduce Kimchi premium

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