Tether Holdings, USDT, Stablecoin, Blockchain, Paolo Ardoino, Market Saturation, Supply and Demand, Ethereum, TRON, Total Value Locked, Multichain Environment, Security, Concerns, Reserves, United Nations, Fuze, Philippines.
There Are Already Well-Established Blockchains
In a recent development, Tether Holdings, the issuer of the world’s largest stablecoin USDT, has decided against launching its own blockchain. Paolo Ardoino, Tether’s CEO, emphasized that despite Tether’s technological prowess, the blockchain market is already saturated with well-established options. With a market cap of $117 billion, USDT plays a crucial role in global crypto trading and remittances.
While Tether has the resources to create its own blockchain, the decision not to do so reflects the dominance of a few major blockchains in the market. Data shows that the top five chains out of 306 control around 86% of the total value of assets locked, with ethereum leading the pack with a Total Value Locked (TVL) of $87.7 billion out of $133.2 billion across all chains.
TRON, another significant player, manages $8.1 billion in TVL and supports 49% of USDT’s supply. Factors such as speed, low fees, use cases, and security contribute to the success of a blockchain. Ethereum’s leading position can be attributed to its first-mover advantage, smart contract flexibility, and hosting the second-most liquid token.
The evolving blockchain landscape has led to a multichain environment, prompting developers and issuers to diversify their operations across multiple platforms. Tether remains focused on ensuring the security and sustainability of USDT, regardless of the blockchain it operates on.
Concerns Around Tether Reserves
Despite Tether’s success, concerns linger in the crypto community regarding the assets backing USDT. A recent United Nations report raised awareness about Tron’s association with cyber fraud and money laundering activities in Southeast Asia.
In response to these concerns, Tether has highlighted its collaboration with law enforcement and the traceability of its token. To enhance understanding and education about digital assets, Tether partnered with Fuze, a digital asset infrastructure provider. The collaboration aims to address various aspects of education in the digital asset space, including compliance, regulatory framework development, and cross-border payment solutions.
As part of its efforts to expand utility, Tether introduced a new payment option for the people of the Philippines, allowing them to use USDT for their social security system (SSS) contributions. The SSS is a government-run social insurance program that supports employees in formal and informal sectors.
