Stablecoin supply to increase ahead of US election, Tether holds $55.8 billion worth of BTC in reserves.

Global stablecoin supply has fallen 2.7% in two months to $177.9 billion, according to a report from HourNetwork. The decline in supply was driven by PayPal's dollar-pegged stablecoin PYUSD, which saw its supply drop by about 50% to $300 million from $6.6 billion last month. Compared to the beginning of 2019, however, the supply is still about 100 times higher. “Supply is likely to increase again as the crypto market rallies ahead of the U.S. presidential election,” the report said.

Meanwhile, Tether (USDT) CEO Paolo Ardoino explained at a crypto forum in Lugano, Switzerland, that “Tether holds $55.8 billion in BTC as reserves (the ratio of user assets to exchange holdings), along with $38.7 billion in gold and $100 billion in US Treasuries.”