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  • bitcoinBitcoin (BTC) $ 42,977.00 0.18%
  • ethereumEthereum (ETH) $ 2,365.53 1.12%
  • tetherTether (USDT) $ 1.00 0.2%
  • bnbBNB (BNB) $ 302.66 0.19%
  • solanaSolana (SOL) $ 95.44 1.28%
  • xrpXRP (XRP) $ 0.501444 0.1%
  • usd-coinUSDC (USDC) $ 0.996294 0.34%
  • staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
  • cardanoCardano (ADA) $ 0.481226 2.68%
  • avalanche-2Avalanche (AVAX) $ 34.37 1.19%
  • bitcoinBitcoin (BTC) $ 42,977.00 0.18%
    ethereumEthereum (ETH) $ 2,365.53 1.12%
    tetherTether (USDT) $ 1.00 0.2%
    bnbBNB (BNB) $ 302.66 0.19%
    solanaSolana (SOL) $ 95.44 1.28%
    xrpXRP (XRP) $ 0.501444 0.1%
    usd-coinUSDC (USDC) $ 0.996294 0.34%
    staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
    cardanoCardano (ADA) $ 0.481226 2.68%
    avalanche-2Avalanche (AVAX) $ 34.37 1.19%
image-alt-1BTC Dominance: 58.93%
image-alt-2 ETH Dominance: 12.89%
image-alt-3 BTC/ETH Ratio: 26.62%
image-alt-4 Total Market Cap 24h: $2.51T
image-alt-5Volume 24h: $144.96B
image-alt-6 ETH Gas Price: 5.1 Gwei
 

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Tether USDT crypto stablecoin

Tether USDT crypto stablecoin: market dominance, profits, and regulatory controversies

  • by ICN.live
Rami Al-Saadi

Tether USDT crypto stablecoin continues to shape the digital asset ecosystem with its unmatched trading volume and controversial legacy.

Since its launch in 2014 by Tether Limited Inc., it has become a dominant force, surpassing even Bitcoin in daily transaction volume.

Tether USDT crypto stablecoin is pegged to the U.S. dollar, giving users a familiar and stable benchmark. This structure has allowed Tether to attract more than 350 million users worldwide by mid-2024. Unlike traditional cryptocurrencies, USDT maintains price stability, which makes it highly useful for traders seeking quick conversions without volatility.

The company reported over $118 billion in reserves and more than $5 billion in excess reserves. In the first half of 2024, Tether made a staggering $5.2 billion in profit. It boasts a net equity of $11.9 billion, with a market cap exceeding $114 billion. These numbers make Tether the king of stablecoins, commanding over 70% of the stablecoin market.

Tether’s Dominance in Trading and Reserves

The success of Tether USDT crypto stablecoin comes from being deeply embedded in crypto trading infrastructure. Its availability across 14 blockchains and protocols helps ensure speed and liquidity for decentralized finance (DeFi) users.

Still, not everything is smooth sailing. Tether has faced years of criticism over the transparency of its reserves. Despite promises, it has never produced a full audit. The firm parted ways with its auditors in early 2018 and has been under increasing scrutiny ever since. In 2022, a New York court ordered Tether to produce documentation proving its backing.

Tether USDT crypto stablecoin under regulatory fire

Tether has also faced cybersecurity and legal challenges. In 2017, $31 million worth of USDT was stolen, forcing the company to hard-fork its system. More recently, in 2023 and 2024, it played a surprising role in law enforcement, helping freeze over $230 million in assets linked to international scams and trafficking.

Tether has stepped up compliance, disabling wallets linked to OFAC-sanctioned individuals and collaborating with the DOJ, FBI, and Secret Service. CEO Paolo Ardoino recently emphasized Tether’s commitment to fighting financial crime, pointing to collaborations that led to the seizure of millions in stolen assets.

The Future of Tether USDT crypto stablecoin in a regulated market

As regulators close in, the future of Tether USDT crypto stablecoin will depend on transparency and collaboration. The firm is increasingly aligning with law enforcement, perhaps in a bid to shed its controversial past. Yet concerns about auditing and reserve backing still remain.

Still, with unmatched liquidity and widespread adoption, Tether will likely remain central to crypto trading. Its role in DeFi, centralized exchanges, and even fraud detection gives it a layered identity that most stablecoins lack. For better or worse, Tether is no longer just a stablecoin—it’s a geopolitical player in the world of digital finance.

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What is the Tether USDT crypto stablecoin and how does it work?

Tether USDT is a stablecoin pegged to the U.S. dollar. That means one USDT is intended to equal $1. Unlike volatile cryptocurrencies, USDT provides stability by being backed by reserves. Users can move funds quickly, avoiding price swings common with assets like Bitcoin. It’s widely used on crypto exchanges for trading, lending, and transfers. Tether claims its reserves include cash, Treasury bills, and other assets. However, there’s ongoing criticism regarding the lack of full audits and transparency. Despite this, USDT remains the most traded crypto asset by volume globally.

Is Tether USDT safe to use for crypto transactions?

From a utility perspective, USDT is very efficient. It’s accepted on nearly all major exchanges and supported on 14 different blockchains. This gives users speed, accessibility, and broad compatibility. However, safety also depends on transparency. Tether has a history of reserve-related controversies and lacks a complete third-party audit. While it has improved compliance and collaborated with law enforcement, these efforts haven’t eliminated all concerns. Most users still trust USDT for transactions, but for long-term holding, caution is advised.

Why is Tether criticized for its transparency?

Tether has long claimed to hold dollar reserves matching every USDT in circulation. However, it hasn’t provided a full audit from an independent firm. In 2017 and again in 2022, legal actions raised questions about its actual reserves. It ended relationships with auditors and faced court orders to provide financial documents. While it issues reserve reports, critics say they lack the depth and verification of a proper audit. This gap fuels skepticism, especially when the company handles over $114 billion in assets.

How has Tether helped law enforcement recently?

Tether has surprised many by becoming a key player in cybercrime crackdowns. In 2023 and 2024, it worked with the U.S. Secret Service and FBI to freeze over $230 million worth of USDT linked to scams and trafficking. These actions were praised by prosecutors, showing a shift in Tether’s image—from a secretive issuer to a partner in justice. Tether now disables wallets tied to OFAC-sanctioned individuals and claims to monitor suspicious activity. This signals a proactive stance in aligning with global compliance standards.

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