Stablecoins have become very popular in the cryptocurrency space over the past few years. In the first place, they allow users to hold their money without the volatility of the regular cryptocurrencies. In the same way, due to their importance as fiat alternatives, there is a huge demand for stablecoins. That said, Tether’s total market cap has surpassed the $50 billion mark for the first time.
USDT in circulation surpasses $50 billion
Tether, the leading stablecoin, surpassed $50 billion in circulation for the first time today. This latest development means Tether’s holdings are higher than the total of nearly all of the banks in the United States.
According to a Bloomberg report, Tether’s growth has been remarkable considering it uses a token as a payment method. The stablecoin issuer is slated to release its first quarter (Q1) statement on its reserves to the New York Attorney General before the end of the month.
Tether is expected to provide a quarterly statement to the New York Attorney General. This follows previous allegations that the stablecoins were not fully backed by fiat currencies. The stablecoin issuer was cleared last month by an external auditor. The examiner revealed that the USDT tokens are fully backed by an equivalent amount of fiat currencies.
Nic Carter, the co-founder of researcher Coin Metrics, told Bloomberg that “At those offshore exchanges, Tether is the main collateral and margin type. Exchange volumes are way up, and Binance volume is way up. For traders to get access to these crypto-only exchanges, they often prefer a stablecoin like Tether. You can think of the supply of Tether as a transparent proxy for the balance sheet of both the crypto-only exchanges as well as the funds trading crypto on those exchanges.”
Tether continues to gain adoption
Tether has been growing over the past few years despite the numerous allegations against it. The company has maintained its position as the leading stablecoin in the world. It is also the fifth-largest cryptocurrency in terms of market cap.
Last month, Coinbase announced that it would be listing Tether on its Coinbase Pro platform. The US-based exchange announced the addition of Tether to its platform a few weeks after an external auditing firm cleared the stablecoin issuer. Tether, also known as USDT, is available on several cryptocurrency exchanges, including Binance. However, Coinbase had opted to use others as well.