Tether's Indian Premium Hits 7-10% Amid Strong Demand

Tether's USDT stablecoin has seen an unusual surge in India, trading at a premium of 7% to 10% above its face value on local exchanges.

The premium is attributed by executives at CoinDCX and CoinSwitch to a simple demand-supply dynamic, where Indian buyers outpace sellers near the global reference price.

CoinDCX's executive vice president, Minal Thukral, explained that the INR price of USDT is set by local order-book depth relative to the global dollar reference. He noted that India has been a net buyer of crypto, resulting in thinner liquidity and higher prices for buyers.

Both CoinDCX and CoinSwitch emphasized that exchanges do not manually set the price of USDT, which is determined by buyers and sellers trading on the platform.