Tether has nicked another milestone as its market capitalization now exceeds $50 billion.
Exponential Growth in 12 Months
Foremost stablecoin Tether has announced that roughly 50 billion USDt is currently in circulation. The release made on the company’s verified Twitter account also showed that the stablecoin-issuer has been increasing by $10 billion on a monthly basis.
Tether is a USD-backed stablecoin whose value is pegged 1:1 with the US Dollar. USDt is a widely used stablecoins and one of the most quoted currencies for Bitcoin and Ether trading pairs.
According to data from crypto analytics firm Messari, Tether controls more than 60% of the stablecoin market while USDC and BUSD own 17% and 9% of the market share, respectively.
Tether was said to have received a boost when it got a seal of approval from the largest US crypto exchange Coinbase.
Inbound transfers for USDt on Coinbase Pro went live on the exchange on April 22, 2021. This marks the first time the San Francisco-based exchange would be supporting the controversial stablecoin.
Tether’s New York Troubles
Tether has been plagued with controversies over the years concerning the composition of its reserves.
In a recently resolved case with the New York Attorney General (NYAG), the stablecoin issuer was accused of giving false information on the volume of its fiat backing.
The NYAG charged the stablecoin issuer for allegedly trying to hide financial losses, although the company admitted to no wrongdoing.
As part of the case settlement, it was agreed that Tether and Hong Kong-based crypto exchange Bitfinex would report its current reserve status and budget. Both companies were also mandated to report any transactions between them and provide public reports for their specific composition of cash and non-cash reserves.
The public reports indicating how the stablecoin is backed and what its reserves look like would be made by Tether starting in May, according to the verdict given by the NYAG.
The companies were also ordered to pay $18.5 million as part of a settlement and were barred from operating in New York.
Meanwhile, the executives at Tether seem to have gotten fed up with the increased scrutiny as the General Counsel at Bitfinex and Tether, Stuart Hoegner, took to Twitter to express his displeasure at how Tether was being portrayed.
Hoegner took a swipe at how other stablecoin issuers were never asked to account for their reserves or scrutinized as Tether was.
Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system. When not immersed in the daily events in the crypto scene, he can be found watching legal reruns or trying to beat his Scrabble high score.