Bitcoin News Today: Tether’s USDt Market Cap Surpasses $160 Billion, Driven by 35 Million New Wallets Quarterly

The market capitalization of Tether’s USDt, the world’s largest stablecoin, has surpassed $160 billion for the first time, marking a significant milestone in the digital currency landscape. Tether CEO Paolo Ardoino described this achievement as a “new mind-blowing milestone,” highlighting USDt’s growing role as a digital dollar for billions of people living in emerging markets and developing countries. USDt crossed the $150 billion mark in May, indicating a rapid expansion in its usage and adoption.

Ardoino noted that USDt is used by more than 400 million people worldwide, with the number of wallets expanding by 35 million each quarter. This growth is particularly pronounced in emerging markets, where USDt serves as a reliable substitute for the US dollar. The blockchain distribution of USDt shows that Tron hosts the highest supply, accounting for about $81 billion, followed by Ethereum with $65 billion. Other networks, such as BNB Chain, Solana, and Polygon, have significantly smaller supplies, totaling $6.8 billion, $2.3 billion, and $1.1 billion, respectively.

Tether’s backing reserves for USDt are primarily composed of cash and cash equivalents, which include short-term US Treasurys. According to Tether’s attestations, these assets constitute 81.5% of USDT’s backing reserves, with Bitcoin (BTC) accounting for 5.1%. Tether holds over $127 billion in US Treasurys as of Q2 2025, ranking as the 18th largest holder globally. The company posted over $1 billion in operating profit in Q1, demonstrating its financial strength and stability.

Tether has been consistently minting new tokens to meet the growing demand. On Wednesday, the company minted another $1 billion, adding to the more than $4 billion minted over the past week alone. This rapid issuance reflects the increasing adoption and trust in USDt as a stable and reliable digital currency.

Last week, Tether announced that it will stop allowing redemptions of USDt on five legacy blockchains, including Omni Layer, Bitcoin Cash SLP, Kusama, EOS (now Vaulta), and Algorand, starting Sept. 1. This move aims to focus on blockchains with better scalability, more developer activity, and stronger community engagement, according to CEO Ardoino. By concentrating on these more robust networks, Tether aims to enhance the efficiency and security of its stablecoin operations.

The stablecoin market has been expanding quickly, with fiat-pegged digital assets increasingly seen as the internet’s go-to settlement layer. In 2024, stablecoin transaction volumes even surpassed those of Visa and Mastercard combined, underscoring their growing importance in the global financial ecosystem. The momentum in the stablecoin market comes as regulatory clarity has been improving, with the Trump administration prioritizing stablecoin regulation. The GENIUS Act, which aims to provide a comprehensive regulatory framework for stablecoins, gained bipartisan support in the Senate Banking Committee and passed the Senate in June. However, it stalled in the House of Representatives after a group of lawmakers blocked a key procedural vote on Tuesday. The House is set to vote Thursday on the GENIUS Act as a standalone measure, highlighting the ongoing efforts to establish clear guidelines for the stablecoin industry.