Tether plans to do this to maintain public confidence in 2024.

977Iti

USDT, the stablecoin, has once again achieved a historic market value high! Tether plans to do this to maintain public confidence in 2024.

USDT, well-known to everyone, has once again lived up to its reputation. On October 23rd, the market capitalization of USDT reached a new high of $84 billion. With its market value continuing to grow, Paolo Ardoino, who will soon take over as Tether's CEO, also stated that they will reveal "real-time reserve data" in 2024.

In 2023, Tether, the issuer of the leading stablecoin USDT, released two Comprehensive Reserve Reports (CRR), reporting net profits exceeding $1 billion for two consecutive quarters and increasing excess reserves to $3.3 billion. This showcases their robust profit-making capability. These statistics have solidified Tether's dominance in the stablecoin market.

According to the reports, Tether holds 85% of its reserves in the form of cash or cash equivalents, with total asset reserves reaching an impressive $86.4 billion, of which over $72.5 billion is in U.S. Treasury bonds. This makes Tether the 22nd largest global buyer, surpassing entire countries like the UAE, Mexico, Australia, and Spain.

Due to Tether's substantial excess reserves, asset backing, and ample liquidity, the market capitalization of USDT skyrocketed in 2023, going from approximately $66 billion at the start of the year to its current $84.3 billion, once again reaching an all-time high. In the overall stablecoin market, the total market capitalization has reached $124.1 billion, with USDT occupying nearly 68% of the market share. The second-place USDC holds only around 20%, underscoring USDT's solid position as the leader in the stablecoin market.

While Tether has consistently been the largest stablecoin issuer, questions have persisted about the transparency of its asset reserves. Previous reports have alleged that the company attempted to falsify documents, set up shell companies, and even engaged in money laundering through straw accounts. Paolo Ardoino, who is set to become Tether's CEO from December 2023, stated that despite the struggles faced by other cryptocurrency companies in bear markets, USDT's continued growth in circulation over the past year, now accounting for nearly 70% of the stablecoin market, has made it an indispensable part of investors' digital asset trading and storage.

Given Tether's systemic importance and the limited understanding of its operational practices, Tether has pledged to address its transparency issues with reserve proof. They plan to release "real-time reserve data" in 2024, aiming to provide more transparency and trust to the market and the community. This move is expected to further solidify Tether's leading position in the stablecoin market.

Shri333

What exactly is going to stabilize public confidence? It's funny how the article didn't mention any of that! Haha.

Samiksha

Are stablecoins not stable anymore these days?

Anar999

As long as USDT doesn't become a cryptocurrency, and as long as it can maintain a one-to-one valuation with the US dollar, then USDT is essentially a digital version of the dollar.

Bhim5551

With its price reaching new highs, it seems like the exchange rate is also on the rise, doesn't it?