Tether 500 Million Users: Stablecoin Milestone and Impact
Tether, the US dollar-pegged stablecoin, has reached a significant milestone by reporting 500 million users worldwide. This figure, announced on Tuesday, marks a major moment for the cryptocurrency sector and highlights Tether’s growing influence, particularly in regions with limited access to traditional banking.
Background: Tether’s Path to 500 Million Users
Tether (USDT) was introduced as a stablecoin designed to reduce volatility by pegging its value to the US dollar. According to Tether CEO Paolo Ardoino, this latest user figure represents “real people, not simply Tether wallets,” suggesting the stablecoin now reaches around 6.25% of the global population. Ardoino described the milestone as “likely the biggest financial inclusion achievement in history,” reporting via Cointelegraph.
The World Bank Group estimates that 1.4 billion adults around the world do not have access to a bank account. Tether has increasingly positioned itself as a solution for the unbanked, offering anyone with a mobile device the ability to send, receive, and store money securely. This capability is especially valuable in countries experiencing high inflation or threats to personal savings.
Market Reaction and Adoption Trends
To mark the achievement of 500 million users, Tether released a short documentary highlighting USDT adoption in Kenya. The film points to the stablecoin’s practical use cases in the country, where users turn to Tether “not for speculation, but for survival.” In Kenya, some small businesses use USDT to sustain their operations amid a declining local currency, with stablecoins providing a means to import necessary goods.
Tether remains the largest stablecoin globally, with a reported market capitalization of $182.4 billion, capturing approximately 58.4% of the stablecoin market, according to CoinGecko. USDT’s main competitor, Circle’s USDC, stands at $76.8 billion in market capitalization. Tether noted that about 37% of USDT holders use the stablecoin primarily as a store of value.
What’s Next for Tether?
Recent reports indicate that Tether is seeking to expand further. The company is in discussions with investors to raise as much as $20 billion, targeting a valuation close to $500 billion. If successful, this could make Tether one of the most valuable private firms in the world. Financial services group Cantor Fitzgerald is acting as a lead adviser for this potential transaction.
Tether’s rising user base and market presence show the growing importance of stablecoins in the global financial system. As digital currencies expand, stablecoins like USDT are increasingly seen as financial tools that can support economic activity, especially in regions underserved by traditional banks.
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