cryptonews.com
Tether’s USDT has achieved yet another milestone by surpassing a market capitalization of $100 billion.
On March 4, Tether (USDT) briefly reached the $100 billion mark, with an impressive growth of 9% year-to-date, according to data by CoinGecko.
Comparatively, USDT maintains a lead of over $71 billion in market cap when compared to its closest competitor, USD Coin (USDC), which is issued by Circle and has also experienced growth this year.
However, it should be noted that other data sources, such as CoinMarketCap, have yet to display Tether’s $100 billion market cap.
Tether’s Market Cap on Par with British Oil Giant BP
With its market cap now on par with British oil and gas giant BP and slightly above e-commerce titan Shopify, Tether has become a key player in the crypto market.
The stablecoin, which is pegged to the value of the United States dollar, is available on 14 different blockchains and protocols, according to the official Tether website.
Currently, it stands as the third-largest cryptocurrency by market capitalization, trailing only Bitcoin and Ether.
Tether has emerged as a crucial asset for crypto traders seeking stability within the volatile market.
Its role as a blockchain-based option has solidified its position and attracted a substantial user base.
Over the past month, the crypto market as a whole has experienced a resurgence, with a market cap exceeding $2 trillion.
Bitcoin, in particular, has witnessed a 50% price increase, reaching levels not seen in two years.
The company behind USDT, also named Tether, claims to back each token with its independently audited reserves, predominantly consisting of yield-bearing U.S. Treasury Bills (T-Bills).
In the fourth quarter of 2023, Tether recorded a record quarterly profit of $2.85 billion, with $1 billion attributed to its T-Bills holdings.
The company has positioned itself as one of the world’s top purchasers of U.S. government debt.
Tether Controversy
Despite the success, concerns about the quality of assets backing USDT have lingered in the crypto space.
In response, Tether has taken steps to reduce exposure to higher-risk assets.
In late 2022, the company pledged to cease lending funds from its reserves by the end of 2023.
However, this objective was not fully realized, as Tether still had $4.8 billion in loans on its books by the end of 2023.
The company claims that these loans are fully collateralized and has promised to eliminate them entirely in 2024.
Interestingly, over 50% of the currently issued USDT is based on the Tron blockchain.
A recent United Nations report highlighted Tron’s popularity among cyber fraud and money laundering activities in Southeast Asia.
Tether has refuted these claims, emphasizing its collaboration with law enforcement and the traceability of its token.
In response to the UN report, Tether said that its collaboration with global law enforcement, including the Department of Justice (DOJ), the Federal Bureau of Investigation (FBI), and the United States Secret Service (USSS), has resulted in unparalleled monitoring capabilities, surpassing traditional banking systems.