Tether Holdings’ USDT stablecoin token has reached a major milestone by briefly surpassing $100 billion in circulation and market capitalization, making it the primary stablecoin to succeed in this dimension.

Tether’s USDT goals to take care of a one-to-one worth with the US greenback and has skilled a circulation improve of over 9% for the reason that starting of the yr, pushed by the rising demand for Bitcoin (BTC), which is at present buying and selling at its highest worth in over two years of $66,000.

USDT Market Share Hits 70%, Exceeding $100 Billion In Circulation

CoinGecko data revealed that Tether’s USDT briefly reached $100.2 billion in circulation earlier than settling round $99.5 billion. Tether’s market dominance is infamous, making up roughly 70% of the $142 billion stablecoin sector, whereas its closest competitor, Circle’s USDC, holds 19.4%.

In keeping with a Bloomberg report, Tether’s said reserves for USDT reached $97 billion in December, with over 76% of these reserves allotted to short-term US Treasury payments. Rising yields on these belongings have considerably boosted Tether’s profitability.

The corporate additionally reported extra capital of $2.85 billion in December, which it utilized for investments in trade analysis, Bitcoin mining, and different areas. Tether’s Chief Govt Paolo Ardoino revealed plans to additional broaden in these areas in 2024, allocating roughly half a billion {dollars} solely to fund Bitcoin mining actions.

Nevertheless, the report additionally notes that Tether has confronted public controversy and regulatory scrutiny on account of issues about transparency relating to its reserves and company construction.

In 2021, the corporate settled allegations by a US watchdog, paying greater than $40 million for deceptive details about its collateral pile. Tether has since revealed quarterly attestations of its reserves with a third-party accounting agency, offering restricted insights into its holdings.

As Bitcoinist has beforehand reported, the corporate has additionally confronted criticism relating to the usage of USDT in terrorist financing and human trafficking, significantly in Asian markets.

A January report by the United Nations Workplace on Medication and Crime highlighted the involvement of organized crime teams in China utilizing Tether for unlawful betting operations. Tether has expressed its dedication to combating the legal use of cryptocurrencies.

Tether Introduces Blockchain Restoration Plan

In keeping with a current announcement, the stablecoin issuer is growing a sturdy blockchain restoration device to make sure uninterrupted accessibility and safety for its customers.

The newly launched blockchain restoration device reportedly permits the corporate to take care of its dedication to consumer safety and shield funds, even in “worst-case” eventualities. By working independently of particular blockchains, Tether can make the most of a number of blockchains as a transport layer whereas making certain the soundness and availability of USDT.

In keeping with the announcement, affected customers can provoke the migration course of by a user-friendly interface if a supported blockchain turns into unresponsive, unreliable, or unusable. This interface will probably be accessible by way of net or command-line instruments, offering a seamless expertise for Tether customers.

To confirm possession of USDT on an unresponsive blockchain, the corporate has assured that customers can cryptographically signal a migration request. Concurrently, they will specify a recipient address on one other supported blockchain to which the USDT will probably be transferred.

Finally, the migration course of is designed to be user-centric, supporting common browser extension wallets and {hardware} wallets equivalent to Ledger or Trezor.