Tether, the issuer of the largest dollar-denominated stablecoin, currently controls about 75% of the total stablecoin market, up from 55% two years ago, according to data from Token Terminal.
This growth has been fueled by the growing adoption of stablecoins, which act as a key gateway between fiat currencies and the crypto world.
Total USDT issuance currently stands at $118 billion, contributing $400 million in revenue over the past month. This revenue boost comes after a strong first quarter of 2024, in which Tether reported $4.5 billion in revenue, largely due to its investments in Bitcoin and gold.
The company is also expanding its workforce and compliance efforts, recently hiring Jesse Speer, PayPal's former head of regulatory relations, as its new head of government affairs.

The steady increase in USDT reserves on the exchanges confirms Tether’s market dominance. On August 13, these reserves hit a new record of $20.3 billion. Historically, USDT reserves have seen a significant increase, whether in boom times or recessions, indicating traders’ confidence in its capabilities.
Circle, the second-largest stablecoin (USDC), is confident that stablecoins will soon become an integral part of global financial transactions. Dante Despart, Circle’s chief strategy officer, stresses the importance of a unified global regulatory framework to ensure that these currencies operate safely and transparently. Circle is preparing to move its headquarters to New York in preparation for its IPO. Despart also calls for a federal framework for stablecoins in the United States to close regulatory loopholes and prevent potential exploitation.

Globally, efforts such as the European Union’s Markets in Digital Assets Regulation (MiCA) have already provided legal frameworks for stablecoin issuances, making the EU a leader in regulatory clarity.
As the stablecoin market matures, competition is heating up. PayPal recently introduced its own stablecoin, PYUSD, while Ripple Labs is testing its own USD-denominated stablecoin across multiple blockchains. Despite this growing competition, Tether remains the dominant player with a market cap of over $118 billion and plans to launch a new stablecoin denominated in UAE dirhams.
It is worth noting that the stablecoin market reached an all-time high of $168 billion in August, and with demand for digital assets on the rise, the space is expected to continue to expand as regulators around the world work to establish clearer rules and guidelines.