2023-12-07 00:11:53
© Reuters. Tether reaches $90 billion in market value
Blockmarket – (USDT), the main stablecoin pegged to the US dollar, reached the significant mark of US$90 billion in capitalization in December this Wednesday (06).
USDT, issued by Tether Limited, tracks the price of the United States dollar, and is the cryptocurrency with the highest daily turnover in the crypto market. In the last 24 hours, more than $60 billion in USDT has been moved.
This high daily volume is mainly due to stablecoins being the main trading pair with other cryptoassets in most brokers. The BTC/USDT pair, for example, is the most traded on Bitcoin currently.
USDC remains the second largest stablecoin on the market, with around US$24 billion in capitalization. Currently, the total stablecoin market exceeds the significant mark of US$ 115 billion in marketcap.
Tether’s business model
Tether Limited has emerged as one of the largest companies in the cryptocurrency industry. The company’s main service is the issuance and management of USDT. But after all, how does the company’s business model work?
Tether is responsible for issuing USDT on different blockchain networks. For each token in circulation, the company must have equivalent assets in reserve. The company has a diversified cash flow of assets that support the value of the crypto asset.
Tether’s main reserve asset is US government bonds, which are denominated in dollars and offer yields to holders. In addition, the company also has other cash assets such as .
In addition to its services with stablecoins, Tether has positioned itself in other sectors of the industry. For example, the company has allocated resources to Bitcoin mining.
Tether Content Reaches $90 Billion in Market Cap appears first on Blockmarket.
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