Tether's Market Cap Hits $160 Billion Landmark Highlighting its Ascend in Emerging Markets and Stablecoin Boom

The stablecoin market recently witnessed a momentous occasion as the market cap of Tether (USDt), the world’s largest stablecoin, reached a whopping $160 billion for the first time. Paolo Ardoino, Tether CEO, recognized this achievement in an address, highlighting this as a testament to USDt’s growing importance as the go-to digital dollar for billions of people hailing from emerging markets and developing nations. Recently in May, USDt had crossed the $150 billion mark.

USDt’s Popularity and Use

Ardoino has emphasized how Tether’s USDt is being used by more than 400 million people worldwide. The company claims that it is adding roughly about 35 million wallets every quarter. USDt has found a significant audience especially in emerging markets where it is seen as a reliable and stable substitute for the dollar. The distribution of USDt shows that Tron carries the highest USDt supply which is approximately at $81 billion. This is substantially more as compared to the $65 billion accounted for by Ethereum, as per data from DefiLlama. The issuance of USDt on other networks is considerably smaller with $6.8 billion on BNB Chain, $2.3 billion on Solana, and $1.1 billion on Polygon.

Backed by Cash Equivalents and Bitcoin

A look into Tether’s attestations illustrates how cash and cash equivalents, primarily short-term US Treasurys, make up 81.5% of USDT’s backing reserves, along with Bitcoin accounting for 5.1%. The sheer amount of US Treasurys held by Tether—which is over $127 billion as of the second quarter of 2025—ranks the company as the 18th largest holder globally. This puts Tether in the league of countries like South Korea and Germany. For the first quarter of 2025, the company posted over $1 billion in operating profit.

Frequent Minting of New Tokens

Tether has been observed minting new tokens consistently. On one Wednesday, Tether minted an additional $1 billion. In fact, in the past week alone, the company minted more than $4 billion in additional tokens.

Focusing on Improved Scalability

Last week, Tether revealed that it will stop enabling redemptions of USDt on five legacy blockchains. These blockchains include Omni Layer, Bitcoin Cash SLP, Kusama, EOS (now Vaulta), and Algorand. The discontinuation is scheduled to commence starting September 1st. The company aims to direct its focus towards blockchains that offer improved scalability, increased developer activity, and robust community engagement.

The Rapidly Growing Stablecoin Market and Regulation

The stablecoin market has been expanding rapidly with fiat-pegged digital assets being seen as an essential settlement layer for the internet. In 2024, stablecoin transaction volumes even surpassed those of traditional giants Visa and Mastercard taken together. The Trump administration and lawmaking bodies have prioritized stablecoin regulation. The GENIUS Act has been leading this charge. It gained bipartisan support in the Senate Banking Committee and was passed by the Senate in June. The bill, however, met with a hurdle in the House of Representatives following a group of lawmakers blocking a key, procedural vote on Tuesday. The House is set to vote on the GENIUS Act as a standalone measure on Thursday. The roller-coaster journey of Tether’s USDt, from its increasing popularity to clearing numerous market cap milestones, is a testament to the growing importance of stablecoins as an important component in the expanding digital economy.

Tether’s Market Cap Hits $160 Billion Landmark Highlighting its Ascend in Emerging Markets and Stablecoin Boom