Tether’s USDT Is on a Roll, Approaches 50% Market Share for the First Time Since This Year
Tether’s (USDT) stablecoin market share is approaching 50% for the first time since December 2021 and is once again consolidating as cryptocurrency’s preferred pegged token. The largest stablecoin issuer now has a $68.4 billion circulating supply, an increase of around 3%, after deploying an additional $2.4 billion USDT this year.
Whale Alert took to Twitter and revealed that stablecoin issuer Tether has added an additional billion USDT. The good news around Tether comes at a time when Paxos has stopped issuing Binance’s BUSD.
It has been reported that the SEC intends to sue the company for breaking investor protection regulations. BUSD has also been tagged as unregistered security by the SEC. With a $16 billion market cap at the time of writing, BUSD is the seventh-largest cryptocurrency by market value.
The Consolidated Reserves Report (CRR) for Tether as of December 31, 2022, was examined in BDO’s independent accountant report, which was made public on February 8th. The CRR showed that Tether boosted its allocation for US Treasury Bills, which now account for 58% of its assets while decreasing its secured loans by $300 million.
Despite the crypto winter that led to the collapse of several companies in the sector in Q4 2022, the company nevertheless managed to make more than $700 million in net profits, according to Tether CTO Paolo Ardoino.
He said, “Tether demonstrated a superior approach to risk management that allowed [it] to maintain its leadership while consolidating profits. Having a safe, conservative, and profitable business that doesn’t require begging for funds from VCs has been always the primary focus of Tether.”
The cryptocurrency market has long been consumed by the fire of the securities debate, and it shows no signs of stopping any time soon. This all began when Ripple, the company that created XRP, was sued by the SEC.