-
Tether’s
USDT
touched
the
$100
billion
market
cap
threshold
Monday
for
the
first
time
in
its
history,
CoinGecko
data
shows. -
USDT
grew
by
$2
billion
over
the
past
week,
benefiting
from
increased
demand
for
liquidity
for
crypto
trading.
USDT,
a
stablecoin
issued
by
Tether,
briefly
hit
$100
billion
in
market
capitalization
for
the
first
time
in
its
history,
according
to
CoinGecko
data,
as
the
rally
on
crypto
markets
expanded.
While
the
number
of
USDT
tokens
stood
at
around
99.5
billion,
according
to
Tether’s
website,
a
slight
price
premium
over
the
token’s
$1
price
peg
on
some
exchanges
was
enough
to
push
the
market
cap
above
that
level
for
a
short
while.
USDT
is
on
track
to
decisively
surpass
the
threshold
again
soon
if
it
continues
its
current
growth
trajectory,
having
added
$2
billion
to
its
supply
over
the
past
week,
as
it
benefits
from
the
crypto
trading
frenzy
that’s
driving
bitcoin
(BTC)
nearer
to
a
record
high.
USDT
is
the
most
popular
stablecoin,
or
crypto
token
whose
value
is
pegged
to
another
asset,
and
a
key
piece
of
plumbing
in
the
digital
asset
market.
It
serves
as
a
bridge
between
traditional
(fiat)
money
and
blockchain-based
markets
providing
market
participants
with
liquidity
for
trading
and
lending.
It
is
also
increasingly
used
for
transfers
and
savings
in
developing
regions
to
access
dollars
outside
of
the
traditional
banking
system.
Tether’s
history
dates
back
to
2014,
when
it
first
issued
a
dollar-backed
digital
currency
called
“realcoin”
on
the
Bitcoin
network
to
help
transfer
fiat
currencies
on
the
blockchain.
Later
that
year,
realcoin
was
rebranded
to
tether
(USDT).
Since
then,
USDT
has
expanded
to
numerous
blockchains
and
Tether
has
launched
stablecoins
pegged
to
gold
and
other
currencies.
USDT’s
market
value
skyrocketed
during
the
2020-2021
crypto
bull
market,
growing
to
$83
billion
from
$4
billion
by
mid-2022,
and
has
become
the
go-to
trading
pairing
for
cryptocurrency
prices
on
centralized
exchanges.
The
company
has,
however,
received
a
fair
amount
of
scrutiny
over
the
years
for
its
opaque
reserve
management,
having
at
one
point
risky
backing
assets
like
Chinese
commercial
paper
and
credit
to
now-bankrupt
crypto
lender
Celsius,
and
a
lack
of
independent
audits
–
a
deeper
financial
analysis
than
attestations.
It
now
says
it
is
backed
mainly
by
more
secure
investments
such
as
U.S.
Treasury
bills,
repurchase
agreements
and
deposits
in
money
market
funds.
Despite
mounting
concerns
about
Tether’s
stability
during
the
brutal
2022
bear
market
in
crypto,
USDT
saw
a
rapid
resurgence
last
year
grabbing
market
share
from
close
competitors
after
a
regulatory
crackdown
on
crypto
exchange
Binance-branded
BUSD
and
the
regional
U.S.
banking
crisis
in
March,
which
heavily
affected
Circle-issued
USDC.
USDT’s
share
of
the
$140
billion
stablecoin
pie
is
now
more
than
70%.
The
company
has
also
become
very
profitable
by
benefitting
from
rising
U.S.
interest
rates,
reporting
$2.85
billion
in
profit
in
the
last
quarter
predominantly
from
yields
on
its
massive
U.S.
Treasuries
holdings.