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Tether’s USDT hits new all-time high despite regulatory concerns

According to a report, the market capitalization of Tether’s USDT has crossed the previous all-time high of $83.2 billion. June 1 statement From stablecoin issuers.

statistics DeFillama revealed that nearly half of the USDT supply, 42.86 billion, is on the Tron blockchain, while 33.37 billion of it is on Ethereum.

There is also a large supply of stablecoins on other blockchain networks such as Binance Smart Chain, Polygon, Solana, Avalanche, and others.

Tether’s transparency data Total assets for June First stood at $85.6 billion and liabilities at $83.2 billion, showing a liquidity cushion of $2.4 billion.

Tether growth in 2023

Tether’s USDT has enjoyed significant growth in the current year, adding almost $17 billion to its market cap. During that time its dominance in the market had also touched the highest level of two years.

In 2023, Tether reported a strong first quarter and intends to invest its profits in bitcoin. Additionally, the crypto firm expanded its business into BTC mining, and its USDT stablecoin was integrated into digital payments platform Strike.

Tether’s CTO Paolo Ardoino said the firm’s growth is a testament to its “battle-tested resilience in the face of market volatility and our industry-leading transparency practices.”

Concerns remain about USDT

Meanwhile, the algorithmic stablecoin explosion of Terra and the subsequent collapse of several crypto-related firms last year has brought more regulatory attention to Tether.

Several media reports have highlighted issues with its opaque reserves, and some hedge funds have been betting on its possible collapse.

Most recently, John Reed Stark, a former SEC official, described the firm as a “huge house of cards” and urged regulators to ban it. According to Stark, the stablecoin issuer operates in a regulatory vacuum, adding that its quarterly verification is no substitute for an audit.

Tether’s success is more apparent when looking at the regulatory turmoil that has hit its major rivals such as Binance USD (BUSD) and USD Coin (USDC).

However, Tether has consistently maintained that it poses no risk to the collapsed crypto firms and has touted its business practices.

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