Bitcoin News Today: Tether's USDT Surpasses $160 Billion Market Cap Driven by Emerging Market Demand

Tether’s USDT has achieved a significant milestone by surpassing the $160 billion market capitalization, solidifying its position as the world’s largest stablecoin. This growth highlights USDT's increasing role as a digital dollar in emerging economies. The milestone was confirmed through an update on Tether’s transparency page, with CEO Paolo Ardoino describing it as a "mind-blowing milestone" and attributing the success to USDT's accessibility and utility in developing markets.

The surge in USDT's market cap is driven by substantial profits from Tether's $127 billion portfolio of U.S. Treasurys, positioning the company among the top 20 global holders, comparable to sovereign nations. In the first quarter alone, Tether reported over $1 billion in operating income, with projected profits for 2024 exceeding $13 billion.

A significant portion of USDT's growth is fueled by demand outside traditional financial centers, particularly on the Tron network. Tron now hosts over $81 billion worth of USDT, surpassing Ethereum's $65 billion. Tron's low fees and fast settlement times make it a preferred choice for cross-border transfers and dollar savings in regions dealing with inflation or currency controls. Other networks, such as BNB Chain, Solana, and Polygon, hold smaller amounts of USDT, but the majority remains on Tron, where the demand for affordable and swift dollar access is highest.

According to the latest attestation, 81.5% of USDT’s reserves are in cash and equivalents, primarily short-dated Treasurys. Bitcoin constitutes another 5.1% of the reserves, with Tether holding over 100,000 BTC, currently valued at nearly $12 billion. Tether has also invested in various infrastructure projects, including AI, telecoms, data centers, energy, and its own Bitcoin mining operations. Ardoino recently stated that Tether aims to become the "largest bitcoin miner" by the end of 2025 and hinted at an advanced brain-computer interface project.

Tether currently dominates the stablecoin market with around 65% share, far ahead of competitors like Circle’s USDC. Analysts forecast that USDC will grow but only reach 30% market share, up from the current 25%. Tether is also considering establishing a U.S.-based subsidiary to ensure compliance with potential future regulations from Washington.