CryptoSlate
A Bank for International Settlements working paper finds that USDT issuance on Ethereum expanded through 2024 without a sustained rise in the balance held by smart-contract accounts. Those accounts held more than 20% of Ethereum's USDT during parts of 2021 and 2022, then about 15% to 20% until late 2024, before the share moved down to roughly 10% to 15%. The paper's chart ends before 2026, so those percentages are historical, not current measurements.
Why it matters
A shrinking share does not necessarily mean a shrinking balance. The BIS authors' data show Ethereum contract-held USDT fluctuating in the low tens of billions of dollars toward the end of the plotted period, while balances in non-contract accounts grew as issuance expanded. Newly issued tokens accumulating outside contracts can reduce contracts' share even if their absolute balance stays near its earlier level.
The study reconstructs USDT holdings from transfer records on Ethereum and Tron, distinguishing smart contracts from externally owned accounts. That differs from protocol-level total value locked, which tracks assets in selected DeFi applications and can count the same tokens more than once. Neither an address type nor a balance proves why a holder owns or uses the USDT: a contract may serve a bridge or custodian, while a wallet may hold funds for payments, savings, remittances or exchange custody.
Market impact
On Tron, smart-contract accounts held about 1% of USDT through most of the study's historical series. The paper's chart puts Ethereum contract-held USDT at roughly $10 billion to $15 billion near the end of its plotted period and Tron's at around $1 billion or less. The percentages use separate chain-specific denominators and are not a combined measure of DeFi adoption.
A later DefiLlama snapshot checked Sept. 28 showed about $183.7 billion in USDT market cap across chains, including roughly $73.3 billion on Ethereum and $92.5 billion on Tron. Those supply figures do not update the BIS account breakdown. Establishing current DeFi deployment would require up-to-date balances for identified DeFi contracts, with bridges and custody separated where possible.
Frequently asked questions
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Does Ethereum's lower smart-contract share mean less USDT was held in contracts?
Not necessarily. The study says the share fell as issuance expanded, while contract-held USDT fluctuated in the low tens of billions of dollars near the end of the plotted period.
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What share of Ethereum USDT did smart-contract accounts hold by late 2024?
Their share moved down to roughly 10% to 15% after hovering around 15% to 20% until late 2024.
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How did the BIS study track USDT holdings?
Researchers reconstructed balances from transfer event logs on Ethereum and Tron, identifying smart-contract accounts separately from externally owned accounts.
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Why is the BIS account breakdown different from DeFi total value locked?
The BIS method follows USDT across addresses on two networks. Protocol TVL measures assets assigned to selected applications and may count the same tokens more than once.
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Do the historical BIS figures show where current USDT is held?
No. The study's holder-balance chart ends before 2026, and a later market-cap snapshot does not break balances down by account type or use.
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