Tether Plans New Stablecoin Launch
In a recent interview with CNBC on April 30, Tether’s CEO, Paul Ardoino, announced that the company intends to introduce a stablecoin in the United States within this year. Currently, Tether’s primary offering, USDT, holds the distinction of being the most utilized stablecoin connected to the US dollar, boasting a market valuation of nearly $150 billion as reported by CoinGecko.
Ardoino noted that the exact timeline for the launch hinges on the progression of stablecoin legislation in Congress. To foster relationships with US regulators, Tether is actively engaging with law enforcement and presenting the advantages of USDT for the US economy.
“We see ourselves as exporters of an exceptional product — the US dollar,”
Ardoino remarked.
Market Dynamics and Profitability
As of late April, USDT represents approximately 66% of the stablecoin market, according to research from Nansen. Notably, Tether stands out not just in market share but also in profitability, reporting close to $14 billion in net income for 2024. The company generates revenue by minting USDT in exchange for US dollars and strategically investing those funds into liquid assets like US Treasury bills.
Despite its global success, the adoption of USDT is primarily evident outside of the US, where the competing stablecoin USDC has gained significant traction. Ardoino explained that Tether’s design philosophy for USDT aimed to serve users in developing regions, like those in rural Africa or shop owners in Istanbul, while indicating that a tailored product for the American market is in development.
Competitive Landscape
According to Nansen, the preference for USDC has surged, especially following the election of President Donald Trump in November. USDC has a market cap exceeding $60 billion, showcasing its growing presence in the stablecoin sector. Nevertheless, analysts believe Tether is well-positioned to retain its leading status amid a competitive landscape, resulting in what appears to be an environment where few will dominate.
