As the first stablecoin to ever achieve this scale, Tether Holdings’ USDT token has accomplished a remarkable feat by momentarily reaching $100 billion in circulation and market valuation.
The increasing demand for Bitcoin (BTC), which is presently trading at its greatest value in over two years of $66,000, has spurred a circulation growth of over 9% since the beginning of the year. Tether’s USDT strives to maintain a one-to-one value with the US dollar.
According to CoinGecko, the market capitalization of Tether’s USDT momentarily hit $100.2 billion before leveling down at about $99.5 billion. Tether is infamously dominant in the stablecoin market, which is worth over $142 billion. Its nearest rival, Circle’s USDC, controls 19.4% of the market.
The claimed reserves for USDT at Tether hit $97 billion in December, with more than 76% of those reserves allocated to short-term US Treasury bills, according to a Bloomberg article. The increasing returns on these assets have been a boon to Tether’s bottom line.
Additionally, in December, the business revealed $2.85 billion in surplus funds, which it put to use funding Bitcoin mining, market research, and other initiatives. Chief Executive Officer Paolo Ardoino of Tether announced intentions for more expansion in these sectors in 2024, with almost half a billion dollars set aside just for Bitcoin mining.
According to the study, Tether has been the subject of public criticism and regulatory investigation because of worries about the lack of transparency around its reserves and corporate structure.
The business paid over $40 million to resolve claims brought by a US watchdog in 2021 about false and deceptive statements made about its collateral holdings. In subsequent quarters, Tether has shared minimal information about its assets via quarterly attestations prepared by an outside accounting firm.
According to Bitcoinist’s earlier reporting, the firm has also come under fire for what some see as its role in the funding of terrorism and human trafficking, especially in Asian markets.
The UN Office on Drugs and Crime released a study in January highlighting the use of Tether for illicit betting activities by Chinese organized criminal organizations. In response to illicit activity using cryptocurrency, Tether has stated its intention to take action.
The stablecoin issuer has just announced that they are working on a powerful blockchain recovery solution to guarantee users’ ongoing access and security.
Reportedly, the newly-introduced blockchain recovery technology enables the corporation to uphold its dedication to customer security and safeguard cash, even in the most unlikely of circumstances. While guaranteeing the availability and stability of USDT, Tether may use different blockchains as a transport layer since it operates independently of individual blockchains.
When a supported blockchain goes down or becomes inaccessible, unreliable, or useless, impacted users may start the migration using an easy-to-use interface, according to the release. Users of Tether will have an easy time navigating this interface, as it is available via online or command-line tools.
The corporation has promised that customers may cryptographically sign a migration request to confirm ownership of USDT on an unresponsive blockchain. At the same time, users may direct the USDT to a different compatible blockchain by specifying the recipient’s address.
At its core, the migration process is user-focused, and it works with all the major hardware wallets and browser extensions, including Trezor and Ledger.