Tether Holdings’ USDT stablecoin token has reached a major milestone by briefly surpassing $100 billion in circulation and market capitalization, making it the primary stablecoin to achieve this dimension.
Tether’s USDT goals to take care of a one-to-one worth with the US greenback and has skilled a circulation enhance of over 9% for the reason that starting of the yr, pushed by the rising demand for Bitcoin (BTC), which is presently buying and selling at its highest worth in over two years of $66,000.
USDT Market Share Hits 70%, Exceeding $100 Billion In Circulation
CoinGecko information revealed that Tether’s USDT briefly reached $100.2 billion in circulation earlier than settling round $99.5 billion. Tether’s market dominance is infamous, making up roughly 70% of the $142 billion stablecoin sector, whereas its closest competitor, Circle’s USDC, holds 19.4%.
In response to a Bloomberg report, Tether’s said reserves for USDT reached $97 billion in December, with over 76% of these reserves allotted to short-term US Treasury payments. Rising yields on these belongings have considerably boosted Tether’s profitability.
The corporate additionally reported extra capital of $2.85 billion in December, which it utilized for investments in business analysis, Bitcoin mining, and different areas. Tether’s Chief Govt Paolo Ardoino revealed plans to additional develop in these areas in 2024, allocating roughly half a billion {dollars} solely to fund Bitcoin mining actions.
Nevertheless, the report additionally notes that Tether has confronted public controversy and regulatory scrutiny attributable to considerations about transparency concerning its reserves and company construction.
In 2021, the corporate settled allegations by a US watchdog, paying greater than $40 million for deceptive details about its collateral pile. Tether has since printed quarterly attestations of its reserves with a third-party accounting agency, offering restricted insights into its holdings.
As Bitcoinist has beforehand reported, the corporate has additionally confronted criticism concerning the usage of USDT in terrorist financing and human trafficking, notably in Asian markets.
A January report by the United Nations Workplace on Medicine and Crime highlighted the involvement of organized crime teams in China utilizing Tether for unlawful betting operations. Tether has expressed its dedication to combating the legal use of cryptocurrencies.
Tether Introduces Blockchain Restoration Plan
In response to a current announcement, the stablecoin issuer is growing a strong blockchain restoration software to make sure uninterrupted accessibility and safety for its customers.
The newly launched blockchain restoration software reportedly permits the corporate to take care of its dedication to person safety and defend funds, even in “worst-case” situations. By working independently of particular blockchains, Tether can make the most of a number of blockchains as a transport layer whereas making certain the soundness and availability of USDT.
In response to the announcement, affected customers can provoke the migration course of by means of a user-friendly interface if a supported blockchain turns into unresponsive, unreliable, or unusable. This interface can be accessible by way of internet or command-line instruments, offering a seamless expertise for Tether customers.
To confirm possession of USDT on an unresponsive blockchain, the corporate has assured that customers can cryptographically signal a migration request. Concurrently, they’ll specify a recipient deal with on one other supported blockchain to which the USDT can be transferred.
In the end, the migration course of is designed to be user-centric, supporting standard browser extension wallets and {hardware} wallets equivalent to Ledger or Trezor.
Featured picture from Shutterstock, chart from TradingView.com
