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Cryptocurrency News Articles
USDT Holds Its Ground as Stablecoin Competition Grows
Feb 08, 2025 at 09:00 am
Tether, the issuer of the world's largest USDT stablecoin, with about $140 billion in market cap, has had its fair share of regulatory scrutiny.
Tether (USDT) still holds its ground as the largest stablecoin in the world with a market cap of about $140 billion. However, the stablecoin market is becoming increasingly competitive, especially with the rise of USDC.
In 2021, the Commodity Futures Trading Commission (CFTC) fined the USDT issuer $41 million for misrepresenting the backing of its stablecoins.
Additionally, Coinbase has begun delisting USDT stablecoins from European markets following the implementation of the Markets in Crypto-Assets (MiCA) regulations on December 30.
Despite these challenges, Tether remains optimistic about its position in the stablecoin market. During the PlanB forum in El Salvador, Tether’s CEO, Paolo Ardoino, expressed confidence in his company’s ability to withstand the competition.
Highlighting the company’s decade-long effort in building an extensive global distribution network, Ardoino stated, “Many people do not realize that Tether has built one of the most extensive digital and physical distribution networks in human history over the past 10 years.”
According to the CEO, this network, which includes partnerships with digital platforms, kiosks, and banks, sets Tether apart from its rivals.
Emphasizing the role of financial inclusion in the stablecoin’s success, Ardoino noted that Tether is working with its partners to create a platform that serves over 400 million customers in emerging markets.
In other news, Tether is reportedly planning to launch a stablecoin pegged to the United Arab Emirates dirham, which will be used to purchase real estate at 30,000 property agents. According to Ardoino, this move will contribute to blockchain innovation in the UAE.
Moreover, Tether is involved in renewable energy initiatives, including a Bitcoin mining operation in Uruguay, and the company is also preparing for an independent audit of its reserves.
While Tether faces competition from USDC, which is audited by Deloitte and boasts a growing market cap, the stablecoin issuer remains unfazed. Ardoino expressed willingness to be audited but noted that no US company wants to audit his company.
Meanwhile, Circle, the issuer of USDC, is preparing to relocate its headquarters to New York City ahead of its planned initial public offering (IPO). This move could further strengthen Circle’s regulatory standing and integrate it into traditional finance.
As the stablecoin market continues to evolve, it will be interesting to see how Tether and its competitors navigate the regulatory landscape, technological advancements, and shifting market dynamics.
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- Tether (USDT) holds its floor when the stable coin competition grows
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