Tether's USDT Hits $160 Billion Market Cap Record

Tether's USDT has reached a historic market cap, exceeding $160 billion for the first time, according to the latest update on the transparency page. This achievement reflects a robust performance for the stablecoin issuer, bolstered by substantial profits from its U.S. Treasury holdings, with Tether reporting over $1 billion in operating profit in Q1 and continuing its growth trajectory that began in late 2022. In a post on X, Tether CEO Paolo Ardoino hailed this accomplishment as a 'mind-blowing milestone' and a testament to USDT's role as a digital dollar for billions in developing nations. Earlier this year, USDT had crossed the $150 billion mark in May. Additionally, data from The Block indicates that Tron has overtaken Ethereum again to hold the highest USDT supply, with approximately $81 billion on Tron compared to $65 billion on Ethereum. The popularity of USDT on Tron in emerging markets is attributed to its low fees and rapid transaction speeds, making it a more accessible choice for cross-border payments and dollar savings. In contrast, USDT issuance on other networks remains low, with only $6.8 billion on BNB Chain, $2.3 billion on Solana, and $1.1 billion on Polygon. Tether's backing reserves predominantly consist of cash and cash equivalents, with 81.5% from short-dated U.S. Treasurys and Bitcoin representing 5.1%. Tether supports over 400 million users globally, adding 35 million wallets each quarter, mainly in developing regions, while holding over $127 billion in U.S. Treasurys, placing it among the largest holders comparable to countries like South Korea and Germany. Analysts at Bernstein predict that stablecoins will transition from being the currency of crypto markets to becoming the currency of the internet, projecting total stablecoin market cap to jump 16 times, reaching $4 trillion in the next decade, fueled by transformative growth in crypto markets and financial services. The recent passage of the GENIUS Act positions Circle’s USDC to become the leading regulated stablecoin, with arguments favoring it as a significant partner for internet platforms beyond crypto exchanges. Yet, Bernstein forecasts Circle capturing a modest 30% of the projected $4 trillion market, while Tether's USDT is expected to maintain a dominant 65% market share. Furthermore, Tether aims to venture into various sectors beyond stablecoins, with a team of under 200 already generating around $13 billion in profit in 2024 and holding over 100,000 BTC. Ardoino has expressed ambitions for Tether to become the largest bitcoin miner by 2025 and anticipates a future where billion-dollar AI agents will utilize Bitcoin and USDT for transactions. Disclaimer: The Block is an independent media outlet providing news and insights. The article is not intended as financial advice.