Tether, the issuer of the widely used Tether (USDT) stablecoin, has announced a new all-time high in its market cap, exceeding the previous record of $83.2 billion set in May 2022.
Paolo Ardoino, Tether’s CTO, attributes this milestone to the increasing demand for financial freedom and the unique advantages offered by Tether tokens. According to Ardoino, Tether provides a financial refuge for the unbanked and helps individuals in emerging markets preserve their buying power, even when their national currency is being devalued.
“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 allow people in emerging markets to keep their buying power, even when their national currency is being devalued. Between our battle-tested resilience in the face of market volatility and our industry-leading transparency practices, Tether has proven that it can be trusted, and customers are responding in kind. We are eager to continue maintaining our laser focus on emerging markets and will not waver in our efforts to expand access to financial freedom globally.”
Since its launch in October 2014, Tether’s USDT stablecoin has become the most traded stablecoin, surpassing the combined trading volume of all other stablecoin offerings.
In Q1, the company reported a net profit of $1.48 billion, significantly boosting its reserves. Approximately 85% of Tether’s investments are in cash, cash equivalents, and other short-term deposits. With a 20% quarter-over-quarter increase in token supply and around $2.5 billion in excess reserves (over the 100% minimum reserves), the stablecoin issuer says it has solidified its position as a reliable entity with a promising outlook for the year ahead.
On May 31, Tether announced that it had “increased presence in Georgia with an investment in CityPay.io, a leading payment processing company, active in over 600 locations across the country including shops, hotels, restaurants and more.”
As CryptoGlobe reported last month, in May, the total market capitalization of the stablecoin sector within the cryptocurrency space reached its lowest level since September 2021, marking its fourteenth consecutive month of decline, as it fell 0.45% to $130 billion (as of May 23, 2023).
According to CCData’s latest Stablecoins & CBDCs report, total stablecoin trading volumes fell by 40.6% to $460 billion in May, recording the lowest monthly trading volume since December 2022.
Featured Image Credit: Tether