USDT’s market cap has hit a new record high, surpassing $160 billion for the first time, according to Tether’s latest transparency page update.
The achievement caps a strong run for the veteran stablecoin issuer, fueled by hefty profits from its U.S. Treasury holdings. Tether posted more than $1 billion in operating profit in Q1, extending the growth streak it began in late 2022.
Posting to X on Wednesday, Tether CEO Paolo Ardoino described it as a “mind-blowing milestone and testament to USDT’s utility as the digital dollar for billions of people living in developing countries. USDT previously crossed $150 billion in May.
In April, Tron surpassed Ethereum once again to become the blockchain with the highest USDT supply, according to The Block’s data dashboard. Tron currently accounts for around $81 billion worth of USDT, compared to approximately $65 billion on Ethereum. USDT on Tron has become especially popular in emerging markets, where its low fees and fast transactions make it a more accessible alternative to Ethereum for cross-border payments and dollar savings.
Issuance on other networks is far lower, with USDT on BNB Chain, Solana, and Polygon at $6.8 billion, $2.3 billion, and $1.1 billion, respectively.
Cash and cash equivalents, like short-dated U.S. Treasurys, make up the majority of USDT’s backing reserves, accounting for 81.5%, while bitcoin represents 5.1% of the reserves, according to Tether’s attestations.
Earlier this year, Ardoino claimed USDT is used by more than 400 million people worldwide, growing at a pace of 35 million wallets per quarter, focused on developing countries while strengthening the U.S. dollar. Tether holds over $127 billion in U.S. Treasurys as of Q2, making it the 18th largest holder, comparable with sovereign nations like South Korea, the UAE, and Germany, according to U.S. Treasury Department statistics.
Becoming the money rail of the internet
Analysts at Bernstein recently said they expect stablecoins to evolve from the money rail of crypto markets to the money rail of the internet, with total stablecoin market cap growing 16x to $4 trillion over the next decade from $249 billion today. This would be driven by “transformative growth” in crypto and tokenized capital markets, payments, and stablecoin-native financial services, they said.
Circle’s USDC is set to become the largest regulated stablecoin under the GENIUS Act, recently passed by the U.S.Senate, and a topic of heated debate in the House amid “Crypto Week” this week. This gives USDC a “regulatory headstart” and positions it as the preferred partner for internet platforms beyond just crypto exchanges, the analysts argue.
However, Bernstein predicts Circle will capture around a 30% share of this potential $4 trillion market, just 5% higher than its 25% share today, while Tether’s USDT continues to dominate with an approximate 65% market share. Tether previously said it may create a new U.S. subsidiary to manage compliance with any new stablecoin legislation in the United States.
Expanding beyond stablecoins
Tether, whose team of less than 200 generated a profit of approximately $13 billion in 2024 and currently holds more than 100,000 BTC ($11.8 billion), has been aggressively deploying capital into a variety of projects beyond stablecoins in recent years across sectors including artificial intelligence, telecommunications, data centers, energy infrastructure, and bitcoin mining.
In a recent episode of The Block’s Big Brain podcast, Ardoino said the firm “will become the biggest bitcoin miner” by the end of 2025. He also predicted that one trillion AI agents will use Bitcoin and USDT for transactions within 15 years, and claimed that a Tether-backed brain-computer interface is already “much more advanced” than Elon Musk’s Neuralink.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
