Tether’s Wallet: Now Bigger Than South Korea’s Economy!

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Key Takeaways

How is the GENIUS Act influencing Tether’s growth?

It prompted Tether to launch USA₮, a compliant dollar-backed token tailored for U.S. regulations. Imagine a bank vault that also plays nice with regulators-revolutionary! 🤯

Is USDT still the dominant stablecoin? 

Yes, but USDC is gaining ground in transaction volume and institutional adoption. It’s like the stablecoin version of a sibling rivalry: “You may be the eldest, but I’m the one with the better college fund.” 🦸♂️💸

The rise of stablecoins is increasingly being felt beyond the digital asset market. Or, as some might say, “Oh no, not another financial system inside the first one!” 😅

Tether becomes the 17th largest U.S. debt holder

Tether’s USDT, the world’s largest stablecoin, now backs its token supply with approximately $135 billion in U.S. Treasury bills, according to recent disclosures. That’s enough to buy a small island and name it after your cat. 🐱🏝️

That figure makes Tether the 17th largest U.S. debt holder globally, surpassing countries such as South Korea and nearing Brazil, as noted by Tether’s CEO Paolo Ardoino. One can only imagine the diplomatic calls now: “Why yes, we’re holding your debt. Let’s talk about Bitcoin next!” 📞

The development underscores how dollar-pegged crypto assets have evolved into meaningful participants in global liquidity flows, particularly in the short-term bond market. Or, as the ancient proverb says, “When you give a man a stablecoin, he prints money. When you give him a Treasury bill, he builds a vault.” 🏦

This comes at a time when the stablecoin market is entering a new regulatory and competitive phase, especially after U.S. President Donald Trump signed the GENIUS Act, establishing a clearer regulatory path for compliant stablecoins in the U.S. market. Because nothing says “trust” like a law named after a word that means “extremely intelligent.” 🤓

How is the GENIUS Act boosting Tether’s growth?

In response, Tether introduced USA₮, a dollar-backed token specifically designed to meet the new U.S. regulatory requirements. It’s like a suit for your crypto-polished, but still slightly suspicious. 🧥

Rival issuer Circle, meanwhile, has been expanding partnerships and infrastructure placements, and overseas players like Japan’s JPYC are also scaling operations to tap into rising global stablecoin demand. The stablecoin arms race is on, folks. Buckle up. 🚀

At the transaction level, stablecoin usage remains massive. Visa’s on-chain analytics further show that stablecoins facilitated $6.4 trillion in total transfers over the past 30 days. That’s enough to buy every cup of coffee ever brewed. ☕

While USDT typically leads market activity, October data illustrate a competitive shift. This is because USDC recorded approximately $669.15 billion in monthly transaction volume, slightly ahead of USDT’s $607.98 billion during the same period. A “slight” lead? More like a sneaky head start. 🐢

The figures suggest that while USDT still dominates overall market share and circulation, USDC is gaining meaningful traction in payments and institutional pipelines. It’s the stablecoin version of “I may be the underdog, but I’ve got a better LinkedIn.” 🎓

Tether is stepping up its stablecoin game

At the same time, Tether is expanding beyond stablecoins altogether. Tether Data, the company’s technology unit, recently announced the launch of QVAC Genesis I, a 41-billion-token synthetic dataset built to train science- and engineering-focused AI models. Because nothing says “innovation” like training AI on data that might or might not exist. 🤖

Alongside it, the firm introduced QVAC Workbench, an application that allows users to run AI models directly on local devices. Now you can trust your computer and your stablecoin. Double the joy! 🖥️

USDT vs. USDC

However, AMBCrypto’s analysis shows USDT still leads the market with a 79% share in August 2025, but its dominance is slowly slipping as USDC gains ground. It’s like a chess match where both players forgot to bring their pieces. 🐉🆚🦁

While USDC offers stronger transparency and fully liquid reserves overseen by BlackRock, USDT’s mix of assets, ranging from Treasuries to Bitcoin and commodities, raises more debate. It’s the financial equivalent of “I’ll have the salad, but also the steak.” 🥗🥩

However, the 10th October flash de-peg proved that stability isn’t just about reserve composition. This is because USDT briefly traded above $1 while USDC dipped, highlighting that trust in stablecoins now depends as much on real-world performance as the assets backing them. Or, as the Discworld might say, “A dollar is a dollar, but sometimes it’s a slightly squashed one.” 💸😅

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2025-10-30 01:17