Erstwhile controversial stablecoin issuer Tether (USDT) now commands a market cap of over $50 billion.
Tether Market Cap Goes Past $50 Billion
Tether, the issuer of the world’s largest stablecoin USDT witnessed its market cap shoot past $50 billion today as the wider cryptocurrency markets displayed healthy recovery after being on a freefall for the majority of the previous week.
According to data from crypto data analytics website Messari, Tether’s market cap, at the time of writing, sits at more than $51 billion.
Notably, USDT’s supply – and in turn, its market cap – has surged by over a factor of 10 over the last 12 months. Interestingly, this stat also includes a staggering 25 percent growth in the span of a month.
For the uninitiated, a stablecoin is any digital currency pegged to a fiat currency or a basket of fiat. In USDT’s case, the stablecoin is pegged to US Dollar which means that for every USDT, there is an equivalent amount of USD held by Tether in its reserves.
Commenting on the development, Paolo Ardoino, CTO, Tether, noted:
“Crossing a market cap of US$50 billion represents an incredibly important milestone for Tether.”
“Tether’s success is a blueprint for a Central Bank Digital Currency (CBDC) and a banking system of the future. We are truly humbled by the pivotal role that Tether now plays in the digital token ecosystem across myriad protocols and applications.”
USDT Bags Regulatory Wins
USDT is, in fact, the first-ever stablecoin to be issued in the world. Being the early mover, USDT enjoys immense liquidity across all crypto markets and is also the most widely used dollar-pegged stablecoin today.
The stablecoin issuer was involved in regulatory muddy waters as in 2019, the New York Attorney General accused Tether of mishandling client funds. However, in February, the company bagged a major win when it reached a settlement with New York prosecutors putting all suspicions to rest for good.
At press time, USDT accounts for more than 66 percent of the overall global stablecoin market which is a testimony to the level of dominance that USDT enjoys in the industry. The next largest stablecoin by market cap – USD Coin (USDC) – is shy of $11 billion.