USDt surpasses $160B market cap in emerging market boom
USDt hits $160B as stablecoin adoption surges across developing nations
Tether’s USDt has officially surpassed a $160 billion market cap, marking a historic high for the world’s largest stablecoin.
Tether CEO Paolo Ardoino hailed the milestone on X, calling it a “mind-blowing achievement” and highlighting its expanding use in emerging markets as a “digital dollar” alternative, reports Cointelegraph.
The stablecoin has added over $10 billion in market cap since crossing $150 billion in May, showing continued global momentum. Ardoino claims over 400 million people use USDt, with 35 million new wallets added every quarter. Tron remains the leading network for USDt, now hosting $81 billion, followed by $65 billion on Ethereum, and smaller portions across BNB Chain, Solana, and Polygon.
Backing and treasury holdings underscore USDt’s financial footprint
USDt is backed primarily by cash and US Treasury bills, which make up 81.5% of its reserves, alongside a 5.1% allocation to Bitcoin, according to Tether’s attestations. The company reportedly holds over $127 billion in US Treasurys, ranking it as the 18th largest global holder, alongside sovereign nations like Germany and South Korea. In Q1 alone, Tether generated over $1 billion in profit, showcasing the financial muscle behind its issuance. Just this past week, Tether minted over $4 billion in new tokens, including $1 billion on Wednesday. However, Tether is phasing out support for several legacy blockchains—such as Omni, Kusama, and Algorand—starting September 1, in a shift toward more scalable networks with stronger developer ecosystems.
Regulatory tailwinds support broader stablecoin market growth
Stablecoins are rapidly evolving into core infrastructure for digital finance, with USDt at the forefront of this transformation. In 2024, total stablecoin transaction volume outpaced Visa and Mastercard combined, reinforcing their role as key internet-native settlement tools. This growth aligns with increasing regulatory clarity, particularly in the United States. The GENIUS Act, championed by the Trump administration, has passed the Senate but faced a temporary stall in the House due to procedural hurdles. A standalone House vote is expected Thursday, and its passage could usher in a formalized framework for stablecoin issuance by commercial banks. If successful, this would cement the role of USDt and its competitors in both institutional finance and everyday consumer transactions.
Recently we wrote that leading stablecoin issuer Tether has minted $3 billion worth of USDT in just 24 hours.
