Tether Launches a Blockchain Recovery Tool As Stablecoin Circulation Hits a Record $100 Billion

Tether Launches a Blockchain Recovery Tool As Stablecoin Circulation Hits a Record $100 Billion

Tether Holdings’ USDT stablecoin has achieved a significant milestone, surpassing $100 billion in circulation, driven by increased demand for Bitcoin. Tether’s dominance in the stablecoin market is evident, with a 70% market share, while its closest competitor, Circle’s USDC, holds 19.4%. Despite its success, Tether has faced regulatory scrutiny regarding reserve transparency and corporate structure. To address concerns, Tether introduced a blockchain recovery plan, ensuring user security and fund protection in adverse scenarios. CEO Paolo Ardoino revealed plans to invest in Bitcoin mining operations, signaling Tether’s commitment to growth and innovation.

USDT Market Share Hits 70%, Exceeding $100 Billion In Circulation

Tether’s USDT momentarily hit $100.2 billion in circulation before settling at about $99.5 billion, according to CoinGecko statistics. Tether’s market domination is well-known; it accounts for almost 70% of the $142 billion stablecoin market, with Circle’s USDC being its closest rival at 19.4%.

Tether reported having $97 billion in reserves for USDT in December, with more than 76% of those reserves being short-term US Treasury bills, according to a Bloomberg article. Tether’s profitability has increased dramatically as a result of rising yields on these assets.

Additionally, the business disclosed $2.85 billion in surplus money in December, which it invested in industry studies, Bitcoin mining, and other ventures.

In 2024, Paolo Ardoino, the CEO of Tether, announced plans to significantly grow in these sectors and dedicate around half a billion dollars to finance Bitcoin mining operations alone.
However, the study also mentions that Tether has been under regulatory and public scrutiny because of issues with reserve and corporate structural transparency.

The business paid more than $40 million to resolve claims made by a US watchdog in 2021 about false statements on its collateral stock. Since then, Tether has released quarterly attestations of its reserves with an outside accounting firm, offering information on its assets.

The United Nations Office on Drugs and Crime reported in January that organized crime groups in China were utilizing Tether for illicit betting activities. Tether has made it clear that it is committed to stopping cryptocurrency fraud.

Tether Introduces Blockchain Recovery Plan

According to a recent statement, the stablecoin issuer is working on a comprehensive blockchain recovery plan to ensure its users’ continued accessibility and security.

The newly released blockchain recovery plan apparently enables the corporation to continue its commitment to customer security and fund protection even in “worst-case” circumstances. Tether’s independence from individual blockchains allows it to use several blockchains as a transport layer while assuring USDT’s reliability and availability.

According to the notice, impacted users can start the conversion process using a user-friendly interface if a supported blockchain becomes unavailable, unreliable, or unusable. This interface will be accessible through online or command-line tools, ensuring a smooth experience for Tether users.

To authenticate USDT ownership on an unresponsive blockchain, the business has said that users can cryptographically sign a migration request. In addition, users can designate a destination address on another compatible blockchain to which the USDT will be sent.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.

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