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Information about Tether (USDT)
USDT (or Tether coin) is a 1:1 USD-backed stablecoin issued by Tether Operation Limited in 2014. USDT is the most popular stablecoin in the cryptocurrency market, with a capitalization of more than 60 billion USD. Each 1 USDT will be worth 1 USD, allowing USDT to maintain price stability while increasing liquidity.
Tether coin (USDT) is created and traded on the Bitcoin blockchain using the Omni Layer Protocol (Omni is a software layer built on the Bitcoin blockchain that allows for the creation and trading of custom digital assets or units). Each USDT unit is backed by one USD in the Tether Limited reserve and can be redeemed through the Tether platform.
News
President Trump aims to enhance the U.S. Dollar’s standing with stablecoins as a central part of the strategy. The U.S. Treasury has initiated legislation to hasten the development and acceptance of stablecoins.
Tether’s USDT has become a key player in the market, ranking as the seventh-largest purchaser of U.S. Treasury bills. In 2024, Tether acquired 33 billion USD in T-bills, positioning itself ahead of other countries.
The stablecoin sector is witnessing heightened interest, with both Trump-affiliated entities and major financial institutions launching new stablecoins. Recent legislation proposals, including the GENIUS and STABLE Acts, aim to regulate this expanding market.
House Majority Whip Tom Emmer argues that stablecoin bills should not enforce stringent anti-money laundering statutes on foreign issuers like Tether. He believes it limits competition unfairly.
Emmer criticizes the Bank Secrecy Act as outdated for blockchain, emphasizing that stablecoins are vital for market price stability. Current bills classify stablecoin issuers as banks under these regulations.
With Tether’s market cap over 144 billion USD, these legislative proposals pose significant challenges. Emmer insists on the necessity of transparent proof of reserves rather than strict compliance with the Bank Secrecy Act.
Paolo Ardoino envisions a ‘stablecoin multiverse’ as adoption accelerates. He anticipates significant use of USDT, projecting growth to 1 billion users, leveraging grassroots outreach.
Despite USDC’s impressive rise to a market cap of 60.2 billion USD, USDT maintains leadership in transaction volume at 357.35 billion USD. Fidelity’s market entry signals institutional interest in stablecoins.
Tether has launched USDT0, a crosschain US-dollar stablecoin, on the OP mainnet of Optimism’s Superchain, enhancing accessibility within Ethereum’s layer-2 environment.
USDT0’s deployment aims to broaden the use of Tether’s USDT across multiple blockchains, with significant growth expected this year, reflecting in substantial transaction volume.
As of March 2025, Superchain secures approximately 4.2 billion USD and dominates Ethereum L2 transactions, currently holding 52% share.
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