India USDT Shortage Deepens as Stablecoin Premium Tops 8.5%
Summary
- A shortage of Tether (USDT) in India pushed the local stablecoin premium above 8.5%.
- India’s USDT price rose to 102.88 rupees, more than 8.5% above the dollar-rupee exchange rate’s June 27 close.
- After India’s Enforcement Directorate cracked down on a 250 billion-rupee money-laundering case, USDT inflows fell, suggesting a risk premium tied to regulatory uncertainty may have been priced in.
Forecast Trend Report by Period
A shortage of Tether’s USDT in India has pushed the local stablecoin premium above 8.5%.
USDT traded as high as 102.88 rupees in India, the Economic Times reported on June 29. That was more than 8.5% above the dollar-rupee exchange rate’s June 27 close of 94.65 rupees.
USDT has typically traded at a 3% to 4% premium to the dollar in India, but that gap has widened sharply amid the recent supply squeeze.
The Economic Times reported that USDT inflows slowed after India’s Enforcement Directorate cracked down on a 250 billion-rupee money-laundering case involving digital assets. The drop in inflows tightened local supply.
Purushottam Anand, founder of Crypto Legal, said the widening premium may partly reflect a risk premium tied to regulatory uncertainty.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.