Tether, the company behind the world’s largest stablecoin by market cap USDT, has achieved a remarkable feat by surpassing its previous all-time high market cap of $83.2 billion, which was achieved earlier last month.
In a Thursday, June 1st, blogpost, Paolo Ardoino, the Chief Technology Officer (CTO) of Tether, highlighted this notable accomplishment emphasizing its importance and describing it as a manifestation of people’s desire for financial independence.
“Today’s numbers demonstrate that people want access to financial freedom, and when given that access, they will make use of it. Tether tokens offer a safe harbor for the unbanked and enable individuals in emerging markets to preserve their purchasing power, even when their national currency is experiencing devaluation,” said Ardoino.
As per the blog, Tether’s market cap was partially catapulted by its exceptional performance in the first quarter, where it reported a net profit of $1.48 billion. Currently, the company’s reserves enjoy an impressive allocation of approximately 85% of investments in cash, cash equivalents, and other short-term deposits. Furthermore, with a 20% increase in token supply each quarter, Tether currently holds an extra $2.5 billion in reserves, exceeding the required minimum of 100%.
The firm has also been expanding its global reach, further underscoring the growing adoption of its stablecoin USDT, which is now the most traded cryptocurrency globally. Notably, in recent weeks, the stablecoin has surpassed the combined volume of all competing offerings, including USDC.
On May 31st, the firm announced its expansion in the republic of Georgia through a strategic investment in CityPay, a payment processing company that operates in various locations across the country, spanning over 600 establishments. The latest announcement brings Tether’s operations to over 120 countries worldwide with limited functionality in around 7 countries only.
Tether has also been expanding its endeavours beyond stablecoins, particularly emphasising Bitcoin, communication networks, and renewable energy ecosystems. Earlier this week, the firm revealed plans to commence sustainable Bitcoin mining operations in Uruguay, a move that is aimed at stimulating the adoption of cryptocurrencies and the creation of employment opportunities for the local communities.
That said, Tether’s remarkable achievement of surpassing the $83.2 billion market cap milestone, compared to just $66.2 billion at the beginning of the year, highlights the increasing adoption of stablecoins and the growing demand for defi transactions. With its continued expansion, particularly in emerging markets, it will be interesting to see whether it will maintain its leadership position within the cryptocurrency ecosystem.
