USDT Market Cap Exceeds $160B Holds 65% Stablecoin Share Amid 35M QoQ Wallet Growth Regulatory Scrutiny Looms

The Tether-issued stablecoin USDT has surpassed a market capitalization of $160 billion, reinforcing its dominance in the stablecoin sector despite escalating competition from rivals. The achievement, announced by Tether CEO Paolo Ardoino via a July 12 X post, underscores the asset’s role as a critical utility for over 400 million users. Ardoino highlighted USDT’s function as a “digital dollar” in emerging markets, where macroeconomic instability has driven adoption. He noted the asset’s quarterly growth rate of 35 million new wallets and its reserve holdings, including $115 billion in U.S. Treasuries, which position Tether as the 18th-largest global holder of such assets [1].

USDT now controls 65% of the stablecoin market share, outpacing USD Coin (USDC) at 26% and other alternatives. Its widespread adoption stems from its role as a bridge between traditional finance and crypto markets, enabling seamless fund transfers and serving as a testing ground for institutional investors. However, the asset faces intensified regulatory scrutiny, with reports linking it to money laundering and terror financing allegations. Regulators in key jurisdictions have increased oversight, while traditional banks are developing their own stablecoins, further challenging USDT’s market leadership [1].

Analysts observe that USDT’s resilience reflects its entrenched position in the crypto ecosystem, particularly in regions seeking alternatives to volatile local currencies. Yet, regulatory risks and emerging competition could test its dominance as policymakers refine stablecoin frameworks. The asset’s ability to maintain its lead will depend on balancing utility with compliance amid a rapidly evolving market landscape [1].

Source: [1] [title1: USDT Market Cap Breaks $160 Billion Despite Tougher Stablecoin Rivalry] [url1: https://zycrypto.com/usdt-market-cap-breaks-160-billion-despite-tougher-stablecoin-rivalry/]