Tether, the force behind the largest stablecoin by circulating supply, USDT, is once again in the spotlight with a strategic maneuver. Over the years, Tether has battled numerous FUD (Fear, Uncertainty, and Doubt) events and was often seen at the root of many cryptocurrency downturns. However, its relentless efforts are now bearing fruit, having navigated through challenges to find favor with supportive regulations.
USAT Launch
In the United States, the GENIUS Act has paved the way for stablecoins to operate and expand within a legal framework, ensuring activities pegged to fiat currencies are safeguarded. This legal backing does come with certain obligations for stablecoin issuers.
Tether’s journey from struggling to secure banking partners and secretive financial arrangements every half a year in mainstream media to now launching USAT is noteworthy. USAT will be fully compatible with the GENIUS regulations, marking a significant shift in Tether’s operations.
In a move to introduce this new stablecoin, Tether has partnered with Rumble, a video platform boasting 51 million active monthly users. Rumble will play a crucial role in distributing USAT and plans to introduce a cryptocurrency wallet, including USAT and other stablecoins. Given Tether’s 775 million dollar investment in Rumble, acquiring a 48% stake by 2024, this partnership comes as no surprise.
Tether plans to soon sell 3% of its shares, valued at around 500-666 billion dollars, marking a potentially historic development in the crypto sector. This investment round is anticipated to elevate Tether to the ranks of companies like OpenAI and Tesla, significantly boosting cryptocurrency visibility.
Stablecoins
Currently, Tether leads the stablecoin landscape with a staggering 175 billion dollars in circulation. Its daily volume exceeds 160 billion dollars, dwarfing its closest competitor, USDC, which maintains an 18.9 billion dollar volume. While USDC’s market cap is at 74 billion dollars, the volume disparity highlights USDT’s dominant presence.
USDe ranks third with a market cap of 14.8 billion dollars, followed by DAI and USD1, associated with Trump, which remains near its initial issuance level with negligible growth. PayPalUSD continues to grow, approaching a market cap of 2.5 billion dollars.
