David Edwards
Tether’s USDT stablecoin has reached a new milestone, surpassing a $160 billion market capitalization for the first time, according to CEO Paolo Ardoino. The figure cements USDt’s status as the leading digital dollar substitute, particularly across emerging and developing economies.
In a post on X (formerly Twitter) Thursday, Ardoino hailed the achievement as a “mind-blowing milestone,” highlighting USDt’s growing role in global financial access. “This is a testament to our mission to empower billions in emerging markets,” he wrote. USDT’s market cap had exceeded $150 billion in May, reflecting rapid growth.
Tether reports that over 400 million individuals now use USDT globally, with wallet growth averaging 35 million per quarter. Tron remains the dominant blockchain for USDt issuance, hosting $81 billion worth of the stablecoin. Ethereum trails with $65 billion, while smaller distributions exist on BNB Chain ($6.8 billion), Solana ($2.3 billion), and Polygon ($1.1 billion), according to DefiLlama.
USDT’s asset backing continues to be a cornerstone of its value proposition. Tether’s Q2 2025 attestation revealed that 81.5% of reserves are held in cash or cash equivalents, primarily short-term U.S. Treasurys. Bitcoin comprises 5.1% of reserves. With more than $127 billion in Treasurys, Tether ranks as the world’s 18th-largest holder—comparable to sovereign nations such as Germany and South Korea.
Operationally, Tether remains highly profitable, posting $1 billion in operating profit in Q1 2025. The firm has also aggressively expanded token issuance, minting over $4 billion in new USDt over the past week, including $1 billion on Wednesday alone.
However, the company is also consolidating its blockchain footprint. Starting Sept. 1, Tether will cease USDt redemptions on five legacy blockchains: Omni Layer, Bitcoin Cash SLP, Kusama, Vaulta (formerly EOS), and Algorand. The move is designed to shift focus toward platforms with superior scalability and developer activity.
This surge in USDT adoption comes amid broader regulatory momentum. The GENIUS Act—targeted at formalizing stablecoin oversight—passed the Senate in June and is set for a standalone House vote on Thursday. The bill, backed by the Trump administration, aims to establish a robust framework for stablecoin issuance and reserve management.
The stablecoin market now commands a $258 billion capitalization and has seen transaction volumes eclipse those of Visa and Mastercard combined in 2024, according to industry data. USDt, as its most prominent player, continues to lead this transformation.
