Tether’s USDt Market Cap Surpasses $160 Billion, Driven by 35% Quarterly Wallet Growth

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 are primarily composed of cash and cash equivalents, with short-term US Treasurys constituting a significant portion. According to Tether’s attestations, 81.5% of USDT’s backing reserves are in cash and cash equivalents, while Bitcoin accounts 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, with another $1 billion minted on Wednesday and over $4 billion minted in the past week alone. This continuous issuance reflects the growing demand for 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 September 1. This move aims to focus on blockchains with better scalability, more developer activity, and stronger community engagement, according to Ardoino.

The stablecoin market has been expanding rapidly, 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. This growing momentum comes as the administration has prioritized stablecoin regulation, with the GENIUS Act leading the charge. The bill 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. The House is set to vote on the GENIUS Act as a standalone measure.