Tether's USDT Premium Reaches Up to 10% on Indian Exchanges

As of late June 30, 2026, Tether's USDT stablecoin is experiencing a notable premium on Indian cryptocurrency exchanges, trading between 7% and 10% above its US dollar equivalent. Executives from major platforms such as CoinDCX and CoinSwitch explain that this premium results from a mismatch between demand and supply in the local market, compounded by limited liquidity.

The premium reflects buyers' willingness to pay more rupees for USDT, which offers dollar exposure in a market where local demand often exceeds the available supply of the stablecoin. For instance, USDT was trading at approximately ₹102.88, significantly above the prevailing official dollar-rupee exchange rate of about ₹94.65, making the average USDT premium rise beyond its usual range of 3% to 4%.

Minal Thakur, CFO of CoinDCX, states, "The INR price of USDT is set by local order-book depth and the global dollar reference. India has structurally been a net buyer of crypto, so local INR demand often runs ahead of available sell-side liquidity." This quote underscores the local market's dynamics where the availability of USDT does not match the increasing purchases.

CoinSwitch co-founder and CEO Ashish Singhal emphasized that the premium is reflective of broader market conditions rather than any deliberate pricing strategy by exchanges. He explained, "When demand outpaces available supply, prices adjust accordingly... This phenomenon is not unique to India. Stablecoins have traded at premiums in several markets during periods of elevated demand or liquidity constraints." The premium ranges from 7% to 10%, depending on market conditions and liquidity availability on the platforms.

There are indications that a recent enforcement action by India's Financial Crime Agency may have contributed to the premium, suggesting a tighter supply of USDT as market makers potentially pull back on sourcing the stablecoin internationally. However, neither Thakur nor Singhal directly referenced the enforcement action's impact in their statements.

Market makers face challenges operating in India due to high taxes on crypto gains and restrictions that have led to consistent market dislocation. The 30% tax on profits, which does not allow for loss offsets, coupled with a 1% tax deducted at the source (TDS), has historically complicated liquidity management for these financial players.

Overall, this scenario illustrates how local market dynamics, influenced by supply constraints and increased demand for USDT, cause the observed premiums on Indian exchanges, with no single exchange responsible for setting those prices. The ongoing supply-demand imbalance remains a critical factor for market participants to watch.