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Tag: Tether

  • It Turns Out Crypto’s Stablecoin Adoption is Around 1% of Previous Estimates

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    Stablecoins were all the rage in 2025. The GENIUS Act provided much needed regulatory clarity for the dollar-pegged crypto tokens, and tech giants like Stripe and Sony got involved with their own related products and services.

    President Trump has also reportedly profited handsomely from stablecoins and the crypto sector more generally, although the USD1 stablecoin he’s affiliated with has been at the center of serious corruption allegations. Additionally, Wall Street veteran Tom Lee made headlines by referring to stablecoins as crypto’s ChatGPT moment, echoing a report released by Citi earlier in the year.

    The crypto industry often pointed to blockchain data to prove that 2025 was indeed a record year for stablecoins in terms of adoption. However, a new report from McKinsey Financial Services indicates the metrics used to show how much stablecoin adoption had increased in the past few years are extremely misleading.

    Raw blockchain transfers are oftentimes pointed to as proof of stablecoin adoption, but the reality is only a small percentage of this activity—around 1% of roughly $35 trillion in total transaction volume—is actually related to real-world payments. This means stablecoin adoption, which the report estimates at $390 billion for 2025, only accounts for around 0.02% of global payments.

    According to the report, B2B payments and international remittances account for most of the stablecoin payment activity, and activities such as crypto exchanges moving funds between blockchain accounts, automated activity with smart contracts, and trading on decentralized exchanges should not be included in payment measurements. The report also indicates around 60% of this activity is originating in Asia, adding, “Activity today is driven almost entirely by payments sent from Singapore, Hong Kong, and Japan.”

    Of course, overblown or outright false adoption metrics are not new in the crypto world. Various data points, such as increased on-chain activity around decentralized finance (DeFi) apps, can be used to tell all kinds of tall tales. There has also been plenty of hype built around metrics such as transactions per second over the years, which tend to miss the point of what makes this technology valuable.

    Despite the clear overstatements in stablecoin payment adoption made by various entities in the crypto industry, the report also indicates there are still signs of real growth. For example, the $390 billion in stablecoin payments occurring in 2025 is more than double what was seen in the previous year. Additionally, the total supply of stablecoins has increased from less than $30 billion in 2020 to more than $300 billion today.

    Of course, not all of this was necessarily positive adoption, as a report from blockchain analytics firm Chainalysis indicated that stablecoins now account for the vast majority of illicit crypto transfers. Reports have also pointed to heavy use of Tether’s USDT stablecoin by the Maduro regime, and adoption by the Central Bank of Iran shows why a pro-stablecoin policy in the U.S. is a double-edged sword.

    More generally, the prominence of stablecoins in crypto has caused a rift between cypherpunks focused on ideology and fintech startups focused strictly on adoption metrics. While stablecoins were originally seen as a boon for crypto adoption, it’s now gotten to the point where stablecoin issuers are launching their own blockchain infrastructure, adding another layer of centralized control to the tech stack.

    While those like the aforementioned Tom Lee see the issuance of stablecoins and other tokens based on real world assets, such as tokenized stocks, as bullish for decentralized crypto networks like Ethereum, questions remain over how much value will accrue to these open protocols or if stablecoin issuers and other centralized entities could successfully cut these networks out of the equation entirely.

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    Kyle Torpey

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  • Global Banking Powerhouses Plan Issuing New Stablecoins Tied To G7 Currencies

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    A consortium of major banks, including Bank of America, Citi, Deutsche Bank, Goldman Sachs, and UBS, announced on Friday that they will collaborate to explore the development of stablecoins pegged to G7 currencies. 

    A New Era For Crypto In Mainstream Finance

    The renewed interest in stablecoins comes in the wake of US President Donald Trump’s endorsement of the sector, which has reignited discussions about integrating blockchain technology into mainstream finance. 

    Currently, the stablecoin market is heavily dominated by Tether (USDT), based in El Salvador, which accounts for approximately $179 billion of the total $310 billion in stablecoins circulating, according to data from CoinGecko.

    The 1D chart shows the total market cap drop in what has been the largest liquidation event in crypto. Source: TOTAL on TradingView.com

    The banks involved in this new initiative, which also includes Santander, Barclays, BNP Paribas, MUFG, TD Bank Group, and others, have stated that the goal is to assess whether a collaborative industry offering could enhance competition and bring the benefits of digital assets to the market, all while ensuring compliance.

    Related Reading

    Notably, France’s Societe Generale recently became the first major bank to issue a dollar-backed stablecoin through its digital asset subsidiary, although it has seen limited adoption, with only $30.6 million currently in circulation.

    In addition to this consortium, a separate group of nine European banks, including prominent names like ING and UniCredit, is also in the process of launching a euro-denominated stablecoin. 

    Meanwhile, Citi has made strides in the stablecoin space by investing in BVNK, a company focused on stablecoin infrastructure. 

    Demand For Stablecoin Solutions Grows

    Although Citi has not disclosed the amount of its investment, the co-founder of BVNK, Chris Harmse, told during an interview with CNBC, that the company’s valuation has surpassed $750 million, as reported in its latest funding round.

    Harmse remarked on the increasing demand for stablecoin infrastructure, particularly with the emergence of regulatory clarity through the passage of the GENIUS Act in the US. This has prompted major US banks to strategically position themselves in the crypto ecosystem. 

    Citi’s CEO, Jane Fraser, has indicated that the bank is contemplating the issuance of its own stablecoin while also exploring custodian services for digital assets. However, Citi is not alone in its pursuit of digital asset integration; JPMorgan Chase has already launched its own stablecoin-like token, JPMD.

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    Banks are increasingly investigating how blockchain technology—originally developed to support Bitcoin—can reduce transaction costs and enhance processing speeds across various financial operations. 

    This exploration includes the concept of tokenization, which involves creating digital tokens that represent traditional assets, such as deposits. For instance, Bank of New York Mellon is currently looking into tokenized deposits, while HSBC has already rolled out a tokenized deposit service.

    Featured image from DALL-E, chart from TradingView.com 

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    Ronaldo Marquez

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  • Tether Taps Trump’s Former Crypto Advisor to Lead US Operations

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    In an effort to solidify itself as the go-to company in the cryptocurrency space for stablecoins, Tether is tapping Bo Hines, the former Executive Director of Donald Trump’s White House Crypto Council to lead its operations in the United States, including efforts to launch a new stablecoin called USAT that will comply with new, Trump-backed regulations, according to CNBC.

    Tether is best known for its USDT stablecoin, which is pegged to the US Dollar and has become the most commonly used token for exchanging cryptocurrencies. USAT will reportedly be its effort to launch a stablecoin that is fully compliant with the recently passed GENIUS Act, an industry-friendly law that regulates the operations of stablecoins.

    It shouldn’t be hard for the company to remain in compliance with Hines at the helm of its US operations, given that he was reportedly instrumental in getting the bill across the finish line and signed into law. Earlier this month, Hines said on Twitter that the GENIUS Act “is about securing the future of American finance,” and said stablecoins “strengthen U.S. dollar dominance, modernize our outdated payment rails, and give Americans faster, cheaper, and more transparent ways to move money.” Which, okay, here’s a simple test to find out if that is true: Try to get your parents set up with Zelle or Venmo, then try to get them set up with a crypto wallet and see which one they find easier to use.

    Anyway, it’s a pretty sweet gig for Hines, who has mostly served as a Trump orbiter who just keeps failing up. Before landing his role as the Executive Director of the President’s Council of Advisers on Digital Assets, he lost two elections in North Carolina that were reportedly funded primarily by his own trust fund. In August, after getting the GENIUS Act over the finish line, Hines left the White House for the private sector, where he apparently knew he had lots of job offers waiting for him—probably because the crypto space is not shy about sucking up to the Trump administration.

    This also probably marks the end of any regulatory scrutiny for Tether, which has repeatedly gotten itself in hot water in the United States. The company got subpoenaed in 2018 as its alleged treasury holdings were disputed, paid to settle a fraud investigation in 2021, and was subject to money laundering investigations in 2024. The company has also repeatedly come under fire for failing to comply with regulatory requirements, maintaining a shockingly small team that seemed incapable of sufficiently ensuring rules were being followed. But with a Trump ally at the helm of its American operations, it seems likely that any scrutiny will suddenly lighten up going forward.

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    AJ Dellinger

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  • South Korean man arrested in Thailand in $50 million crypto scam

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    A South Korean man was arrested in Bangkok, Thailand on Saturday, accused of laundering over $50 million worth of cryptocurrency into physical gold bars in the span of just three months.

    The man, identified by Thai authorities only as “Han,” was allegedly a key figure in a call-center fraud network that lured victims in with promises of 30-50% returns on investment. Authorities say the victims were paid off initially in small amounts to build trust before they started facing withdrawal limits later on.

    Meanwhile, Han allegedly amassed 47.3 million in Tether, a stablecoin tied to the value of the U.S. dollar. He allegedly used the digital funds to purchase gold bars, each weighing more than 10 kilograms or 22 pounds, with each transaction worth more than $1 million.

    Police said the gold bars were used to convert the illicit crypto funds into a tangible commodity that the scammers could move across borders without being detected.

    After victims started filing complaints, the Thai Criminal Court issued an arrest warrant for Han and his operatives in February. Eleven people, including Han, have been arrested so far with involvement in the scam, according to Thai media.

    Thai police apprehend Han at Bangkok’s Suvarnabhumi Airport, and are charging him with fraud, impersonation, computer crimes, money laundering, and participation in a criminal syndicate.

    Victims around the world lost a whopping $10.7 billion to crypto scams in 2024, according to blockchain intelligence firm TRM Labs data. The report found that global crypto scams overall were up 456% over the past year. Experts advise people to use caution in their approach to cryptocurrency or even to avoid it altogether.

    Crypto has particularly turbocharged cross-border scams: the borderless, instantaneous, and anonymous nature of crypto transactions facilitates these criminal operations, while the deals evade the usual regulatory oversight of other cross-border financial transactions.

    Thailand is betting big on crypto

    The news also comes as the Thai government makes a huge bet on crypto in hopes to revamp its tourism industry.

    Earlier this week, Thailand announced an 18-month pilot program that would allow tourists to convert crypto into the local currency, the Thai baht, via Thai-based crypto exchange platforms to make payments to local businesses.

    The Thai Finance Ministry said that they will be capping the conversions at 550,000 baht, roughly equal to almost $17 thousand to prevent money laundering, Reuters reported.

    Han’s home country of South Korea is also no stranger to multi-million dollar cryptocurrency investment scams. Just less than a year ago, South Korean police arrested more than 200 people for stealing more than $228 million in a crypto scam that has since been deemed the largest in the country’s history.

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    Ece Yildirim

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  • Mercuryo announces fiat-to-crypto on-ramp services for Tether on TON

    Mercuryo announces fiat-to-crypto on-ramp services for Tether on TON

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    Mercuryo, a global payments company, has partnered with TON to introduce fiat-to-crypto conversion services for USDT.

    The initiative began with integrating Tonkeeper, a self-custody wallet that supports transactions in Layer 1, The Open Network (TON), and other digital currencies.

    Aviessa Khoo, Executive Director at Mercuryo, Singapore, expressed satisfaction with the introduction of on-ramp services for Tether tokens (USDT) within the TON ecosystem. The services are designed to enable the on-ramp of fiat currency to USDT, streamlining transactions across the network.

    The integration extends to Wallet, a Telegram crypto wallet with over 900 million users, allowing instant, fee-free transfers of USDT among Telegram contacts globally.

    “USDT support in TON is making possible a mass-market economy on a decentralized network for the first time in history.”

    Oleg Andreev, CEO of Ton Apps Group

    Mercuryo also plans to introduce off-ramp services later this spring, allowing users to convert cryptocurrency to fiat. The feature will be available for wallet and other leading wallets in the TON ecosystem, expanding its functionality.

    The TON Foundation launched an incentive program, allocating 11 million Toncoin to promote USDT use on its network. At the Token2049 conference, Telegram founder Pavel Durov detailed new TON features, including payments for ads and tipping in TON, NFT sticker sales, and crypto-based account functionalities.


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    Bralon Hill

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  • Expert Analysis: Bitcoin ‘Bottom Is Not In’, Potential $30K Retest On The Horizon

    Expert Analysis: Bitcoin ‘Bottom Is Not In’, Potential $30K Retest On The Horizon

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    Bitcoin (BTC), the largest cryptocurrency by market capitalization, closed January above the $40,000 threshold, signaling positive price action. However, market expert Justin Bennett suggests that Bitcoin’s bottom has yet to be reached. 

    Bennett’s analysis highlights the possibility of further price declines, with Tether’s stablecoin USDT dominance (USDT.D) chart indicating potential downward movements. 

    Tether Dominance Signals Concerns For BTC’s Price

    Bitcoin’s recent price recovery and ability to surpass the $40,000 level have provided optimism among investors. Nevertheless, Bennett believes further price declines could follow a retest of the mid $44,000 range. 

    Bennett highlights the inverse relationship between Tether dominance and Bitcoin. According to his analysis, the levels on the Tether dominance chart since October have been reliable indicators for Bitcoin’s price movements. 

    Tether’s USDT dominance growth. Source: Justin Bennett on X

    According to Bennett’s analysis, as depicted in the chart above, Tether’s dominance may experience a potential increase from its current level of 6%. This increase could bring it closer to the 8% mark. 

    In such a scenario, Bitcoin’s performance would likely move in the opposite direction, indicating potential price declines soon.

    On January 25, Bennett suggested that Bitcoin could drop another 20% from its current levels, which would place it around $30,000. If this scenario plays out, it would be crucial for Bitcoin bulls to defend the $30,000 level to maintain the current bullish structure.

    A drop below $29,000 would give bears a stronger position, with only three major support lines remaining at $28,400, $25,900, and $24,000 before a potential retest of the $20,000 mark. 

    The performance of these support levels and Bitcoin’s ability to withstand increased selling pressure will be key factors to monitor. The future market sentiment will also play a significant role in determining Bitcoin’s price trajectory.

    Bitcoin Witnesses Stellar Accumulation Trend

    Despite the possibility of further price drops, renowned crypto analyst Ali Martinez has shed light on a notable trend in BTC’s recent accumulation streak by investors.

    According to Ali Martinez’s analysis, Bitcoin is experiencing a significant accumulation streak, rivaling some of the most notable periods observed over the past few years. 

    The Accumulation Trend Score, a metric that gauges the buying activity of larger entities, has remained consistently high, hovering near 1 for the past four months.

    Bitcoin
    BTC’s Accumulation Trend Score is trending to the upside. Source: Ali Martinez on X

    This suggests that influential market participants are actively accumulating Bitcoin, signaling their confidence in the long-term potential of the cryptocurrency. 

    Martinez’s observations further indicate that Bitcoin’s price range around $42,560 has emerged as a highly significant interest zone. 

    Within this range, an impressive total of 912,626 BTC has been transacted. This is expected to be a significant support level, potentially preventing further downside movements and fostering increased buying interest.

    These trends collectively contribute to a positive market outlook, suggesting that despite potential price drops, Bitcoin remains an attractive asset for long-term investment.

    Bitcoin
    The daily chart shows BTC’s sideways price action between $42,900 and $43,000 over the past 24 hours. Source: BTCUSDT on TradingView.com

    Featured image from Shutterstock, chart from TradingView.com 

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • Stablecoins Surge: USDT Leads $400 Million Inflows

    Stablecoins Surge: USDT Leads $400 Million Inflows

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    The cryptocurrency industry has witnessed a significant change in the movement of stablecoins, offering valuable observations into the evolving dynamics of the market. Recent data from IntoTheBlock and CryptoQuant has shown a surge in stablecoin inflows into exchanges, reaching record highs in January.

    Notable inflows were observed on January 2nd ($478 million), January 3rd ($489 million), and January 26th ($673 million). However, this trend has since reversed, with outflows dominating the market.

    On January 30th, there was a substantial outflow of $412 million, marking the second-highest daily outflow recorded in the month, following the $541 million outflow on January 19th.

    USDT Leads Stablecoin Rally, But Caution Persists In Crypto Market

    An analysis of the 24-hour trading volume of the top stablecoins on CoinMarketCap reveals that Tether (USDT) and USD Coin (USDC) collectively accounted for approximately 90% of the total volume. Tether, in particular, has been dominant in terms of flows, with a 24-hour trading volume exceeding $42 billion, while USDC’s volume stood at around $6 billion.

    Taking a closer look at the flow of USDT through CryptoQuant, it was found that there was a substantial inflow of $373 million on January 26th, followed by a prevailing trend of outflows, with over $83.4 million observed at the time of writing.

    USDTUSD currently trading at $0.99897 on the daily chart: TradingView.com

    Experts suggest that the rise in stablecoin inflows onto exchanges, particularly the $478 million on January 2nd, could indicate traders’ and investors’ readiness to participate in the market or their desire to safeguard their funds during uncertain times.

    Conversely, the shift towards outflows may signal caution or preparation for potential market volatility. Additionally, the substantial inflow of stablecoins, especially USDT, could indicate increased buying power and intentions to establish positions in the cryptocurrency space.

    Stablecoins Surge, Signal Investor Preparation

    The increase in stablecoin inflows onto exchanges can be interpreted in two ways. Firstly, it may indicate that investors and traders are preparing to enter the market. By moving their funds into stablecoins, they can quickly transition into other cryptocurrencies when they perceive favorable opportunities. This suggests a readiness to participate and take advantage of potential market movements.

    Secondly, the rise in stablecoin inflows may also reflect a desire to keep funds in a secure manner, particularly during uncertain times. Stablecoins offer stability by being pegged to a specific asset, such as the US dollar, which can be appealing to investors seeking to protect their capital in times of market volatility. This cautious approach can be seen as a way to safeguard funds and mitigate risks in an unpredictable market.

    Tether Records Nearly $3 Billion Profit 

    Meanwhile, Tether announced a “record-breaking” $2.85 billion in quarterly profits as the market capitalization of its main token, USDT, approached $100 billion.

    According to a blog post by Tether, the interest gained on the company’s enormous holdings in US Treasury, reverse repo, and money market funds—which support the USDT stablecoin—account for around $1 billion of the earnings in the most recent quarterly attestation report that was released on Wednesday. Everything else was “mainly” due to the growth of Tether’s other assets, like gold and bitcoin (BTC), the stablecoin issuer said.

    Featured image from Wccftech, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Christian Encila

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  • Tether minted another $1b USDT on Tron, here’s why

    Tether minted another $1b USDT on Tron, here’s why

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    Stablecoin operator Tether again minted a trove of USDT tokens on Tron’s network, but there’s a catch: the coins aren’t yet available for swaps or transactions. 

    According to LookOnChain, Tether has minted $13 billion in new USDT tokens on Ethereum and Tron blockchains since October last year. The latest addition to Justin Sun’s Tron decentralized network is $1 billion in USDT.

    While the tokens have been minted, on-chain data showed that the USDT added to Tron on Jan. 29 has not been issued yet. This means that the massive mint was intended for future purposes, as confirmed by Tether CEO Paolo Ardoino.

    Ardoino’s clarification, however, has not dispelled speculation that Tether’s mint may foreshadow price increases across a swathe of cryptocurrencies. An uptick in the creation of new USDT is usually tied with bullish sentiment and is sometimes employed as an indicator to signal rising demand. 

    Tether’s total market capitalization, a staggering $96 billion at press time, has been in an uptrend since January last year following multiple marquee crypto bankruptcies and collapses like Terraform, Three Arrows Capital, and FTX.

    USDT market cap | Source: CoinGecko

    In those 12 months, USDT’s cap map grew by nearly $30 billion and solidified its position as the dominant stablecoin on the market, but former Bitmex CEO Arthur Hayes believes legacy financial institutions could challenge this trend.

    During an interview, Hayes said banks like JPMorgan are positioned to overtake Tether and rivals like Circle if and when regulators permit fiat-backed stablecoin issuance.

    Hayes did not surmise when this shift might occur but the 2024 U.S. presidential election may be pivotal in shaping America’s whole-of-government approach to blockchain adoption and crypto assets. Galaxy Digital CEO Mike Novogratz said crypto regulations before an election outcome are unlikely. Some lawmakers foresee friendlier digital asset rules depending on who eventually wins.

    Recently, GOP candidate Donald J. Trump bashed CBDCs and independent runner Robert F. Kennedy labeled them a threat to civil liberties.


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    Naga Avan-Nomayo

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  • Bitcoin Accumulation: USDT Issuer Tether Goes On Massive 8,888 BTC Buying Spree

    Bitcoin Accumulation: USDT Issuer Tether Goes On Massive 8,888 BTC Buying Spree

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    In an encouraging development for the crypto space, Tether, the issuer of the world’s largest stablecoin USDT, has doubled down on its Bitcoin investment momentum by acquiring a staggering 8,888 BTC, further diversifying its portfolio. 

    Tether Increases Its Bitcoin Holdings

    Tether has recently made its third largest Bitcoin purchase, as the stablecoin issuer added a total of 8,888 BTC valued at $380 million at the time of purchase. This brings its total BTC holdings to 66,465 BTC, valued at $2.81 billion with an average buy price of $42,353. 

    This transaction was captured by BitInfoCharts data, which also showed the previous amounts of BTC accumulated by the blockchain-enabled platform. This recent purchase follows Tether’s Bitcoin investment strategy, in line with its vision to continuously strengthen its reserves by accumulating Bitcoin.

    Earlier in May 2023, the stablecoin issuer announced in a blog post that it would regularly allocate 15% of its net realized operating profits toward increasing its BTC reserves. As of the end of March 2023, Tether held approximately $1.5 billion worth of cryptocurrency, a $1.3 billion difference from its total BTC holdings presently. 

    According to reports from Dune Analytics, Tether has become the 11th largest Bitcoin holder, with Microstrategy, an American business intelligence service, surpassing Tether’s holdings with over 189,00 BTC accumulated. The other addresses in the top 10 rankings are owned by major crypto exchanges and governments, including Binance, Bitfinex and the US government. 

    Tether’s decision to double down on its Bitcoin investments signals its confidence in the cryptocurrency’s future trajectory. It also underscores the blockchain platform’s belief in the long-term potential of BTC as it aims to capitalize on Bitcoin’s potential growth by bolstering and diversifying its digital asset reserve.  

    BTC price sitting at $41,354 | Source: BTCUSD on Tradingview.com

    BTC Accumulation Race Amidst ETF Hype

    Tether’s strategic Bitcoin purchase comes at a time when the crypto market is buzzing with excitement over Spot Bitcoin ETFs. Before the approval of Spot Bitcoin ETFs, Tether had steadily increased its BTC portfolio, purchasing substantial quantities of BTC consistently. In March 2023, the stablecoin issuer bought 15,915 BTC and another 4,083 BTC between the months of May and September.

    The timing of Tether’s BTC purchase suggests a proactive stance towards potentially seizing the opportunities brought forth by the Spot Bitcoin ETF market and the upcoming Bitcoin halving in April.

    In addition to Tether’s large-scale BTC acquisition, Microstrategy is also another major player which has been continually increasing its BTC holdings. The business intelligence software company added a whopping 14,620 BTC to its portfolio in December 2023. At the time, the value of the purchase was about $615.7 million. 

    Other companies with large BTC holdings include Galaxy Digital and Elon Musk’s Tesla, as well as space exploration company SpaceX.

    Featured image from Investopedia, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Aggregate stablecoin supply sees largest increase since October

    Aggregate stablecoin supply sees largest increase since October

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    Glassnode data recorded a $4.1 billion monthly increase in the aggregate stablecoin supply, a 21-month high for fiat-pegged cryptocurrencies following bullish momentum. 

    Since October last year, stablecoin supply has shot up steadily with Bitcoin’s price uptick. This ascent has impacted the aggregated stablecoin market cap, which stood above $128 billion as of Jan. 18. The increase marks the largest inflow since March 2022.

    Tether’s USDT dominated the scene with nearly 73% in market share. The market’s second-largest stablecoin, Circle USD Coin (USDC), followed with a 19% share. 

    Binance USD (BUSD) issued by Paxos, which the Securities and Exchange Commission alleges is a security, came third. MakerDAO’s DAI and TUSD were also factored into Glassnode’s report. 

    The collective stablecoin pool is an essential piece in cryptocurrency transactions via centralized venues like Coinbase and decentralized exchanges like Uniswap. Stablecoin supply and market cap progression are sometimes used to gauge market sentiment, with increments typically associated with bullish market outlooks.

    Stablecoin illicit transactions are up

    A Chainalysis report on Crypto Crime Trends noted a shift in criminal activity associated with stablecoins alongside increased transactions and supply.

    The research found that stablecoins accounted for roughly 60% of illicit transactions over two years. Chainalysis stressed that findings were published on initial estimates, and the trend did not apply to all criminal operations. 

    This isn’t the case for all forms of cryptocurrency-based crime. Sanctions-related volume and scam inflows are primarily driving the trend, whereas stablecoins are rarely used for ransomware and darknet markets.

    Chainalysis Crypto Crime Trends report

    Issuers like Tether can freeze accounts and work closer with law enforcement instead of more decentralized protocols. USDT’s operator deactivated more than 30 addresses linked to suspicious transactions in Israel and Ukraine.

    The report states that Bitcoin’s (BTC) high liquidity made it the preferred crypto choice for bad actors despite a 30% drop in BTC-based illicit finance since 2021.


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    Naga Avan-Nomayo

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  • Stablecoin Takeover? Record Tether 71% Dominance Raises Questions About Crypto Future

    Stablecoin Takeover? Record Tether 71% Dominance Raises Questions About Crypto Future

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    Tether, the issuer of the ubiquitous USDT stablecoin, cemented its dominance in 2023, ballooning its market share to a staggering 71%. This explosive growth, however, comes with a chilling undercurrent: a United Nations report linking USDT to a surge in cybercrime and money laundering in Southeast Asia.

    Glassnode data paints a stark picture of Tether’s ascent. Its market capitalization reached a record $95 billion in January 2024, fueled by a 40% increase in USDT supply over the past year. Meanwhile, competitors like Circle’s USDC saw their market share shrink, with USDT now commanding over 7 times the circulation of its nearest rival.

    Tether Market Dominance Soars 

    USDT dominance shown in green. Source: Glassnode

    Paolo Ardoino, Tether’s new CEO, has prioritized cooperation with U.S. law enforcement. The company boasts of freezing wallets linked to sanctions lists and recovering over $435 million in illicit funds.

    However, the UN report casts a shadow on these efforts, detailing how USDT facilitates “sextortion,” “pig butchering” scams, and underground banking across Asia.

    While Tether has proactively banned over 1,260 addresses linked to criminal activity, the sheer volume of illicit transactions raises concerns about the effectiveness of these measures.

    USDT market cap currently at $94.904 billion. Chart: TradingView.com

    Critics point to Tether’s opaque reserve backing as a breeding ground for misuse, calling for greater transparency to combat money laundering.

    Tether’s Reign At Risk: Regulatory Challenges

    The stablecoin market, once touted as a bridge between traditional finance and the crypto world, now faces a reckoning. Tether’s dominance is undeniable, but its association with criminal activity threatens to erode trust and trigger stricter regulations.

    Tether total assets nearing the $95 billion level. Source: Gabor Gurbacs X post.

    Meanwhile, Circle’s recent IPO filing hints at a potential shift in the landscape. With regulatory scrutiny intensifying, Tether’s future hinges on its ability to address concerns about transparency and combat illicit activity.

    Can it clean up its act and maintain its crown, or will the tide turn towards its more transparent rivals? Only time will tell if Tether’s reign as the king of stablecoins will weather the storm of controversy.

    With its historic 71% market share, Tether’s reign over the stablecoin realm is undeniable. Yet, the shadow of illicit activity threatens to eclipse its success.

    As regulators sharpen their focus and competitors like Circle step into the ring, the question looms: will Tether clean house and retain its crown, or will this be the tipping point for a stablecoin revolution, reshaping the future of crypto itself?

    Only time will tell if Tether’s dominance signals a bright new era for digital currencies or serves as a cautionary tale, paving the way for a more transparent and accountable crypto landscape. The gloves are off, and the fight for the future of stablecoins is just beginning.

    Featured image from Shutterstock

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Christian Encila

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  • Chinese investors with political ties allegedly behind mining hub in Texas

    Chinese investors with political ties allegedly behind mining hub in Texas

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    A new report from The New York Times sheds light on how Chinese investors, aided by Binance, acquired a Texas mining facility.

    A 23-year-old Chinese national and NYU student, Jerry Yu, appears to be the majority owner of a Texas-based crypto mining facility BitRush, which was backed by $6 million in Tether (USDT) by undisclosed Chinese investors, according to a recent report from The New York Times.

    In one of the lawsuits filed by Crypton Mining Solutions, which alleges non-payment for services in the Texas Panhandle town, BitRush’s investors — described as “not only Chinese citizens but citizens in highly political and influential business positions” — raised concerns about how exactly the funds were transferred from China to the U.S.

    The lawsuits, as reported by NYT, exposed a public money trail ending at Binance, which facilitated transactions with USDT through its offshore branch when the exchange’s operations were not adhering to American banking rules, the report notes.

    It is unclear who was the source of the funds, as it is only known to Binance. Gavin Clarkson, a lawyer for BitRush, told NYT that the firm itself never sent or received any money through Binance. Clarkson also disputed claims of non-payment and said that compliance with all relevant laws and regulations was observed.

    A spokesperson for Binance said the transactions belonged to “foreign nationals who were not U.S. residents,” without revealing their names. According to legal documents shared by Crypton, BitRush planned to buy the Texas site with $6.33 million in USDT. The documents also reveal that after Yu, the biggest shareholder of BitRush was an undisclosed investor from IMO Ventures, a China-focused venture capital firm.


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    Denis Omelchenko

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  • Tether treasury's $60m transfer to whale sparks scrutiny

    Tether treasury's $60m transfer to whale sparks scrutiny

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    Lookonchain, a web3 data analysis tool that tracks whale activity, shared a post on X that one fund or institution had secured $60 million in USDT from the Tether Treasury.

    This brings the total to $1.76 billion USDT received from Tether Treasury and subsequently funneled into exchanges since Oct. 20.

    As part of the post, Lookonchain puts these numbers into perspective, highlighting the sum is enough to acquire 44,000 Bitcoin (BTC) at an average price of $40,000.

    On Nov. 22, Lookonchain also reported significant Tether treasury transactions, revealing that Tether Treasury had recently minted an additional $1 billion. The tweet emphasized a noteworthy development, cautioning followers that this particular entity had accumulated a staggering 1.13 billion USDT from the Tether Treasury within the preceding 32 days.

    These transactions continue to be flagged by web analysis tools due to the previous controversies the world’s largest stablecoin encountered, drawing scrutiny from critics who raise concerns about its transparency and financial stability.

    Some developments, such as a legal settlement with the New York Attorney General (NYAG), have heightened suspicions, revealing instances where Tether was not fully backed at certain points in time.

    Further intensifying the scrutiny, a Wall Street Journal investigation has shed light on allegations that Tether’s partners utilized counterfeit documentation to secure access to bank accounts, adding to the project’s challenges.


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    Sarah Jansen

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  • Tether whale received $1.1b USDT since October, buoying bullish speculation

    Tether whale received $1.1b USDT since October, buoying bullish speculation

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    Tether CEO Paolo Ardoino said a recent massive mint at the company’s treasury was intended for inventory purposes, while crypto proponents surmised a bullish thesis due to whale activity with USDT.

    Whale Alert pointed to $1 billion USDT minted at Tether’s treasury on Nov. 22, propelling chatter among proponents around inflows to cryptocurrencies and rallying token prices as part of an upcoming bull run. 

    Responding to the news, Ardoino stated that the transaction was earmarked to support USDT liquidity on Tron’s blockchain. Ardoino noted that the amount would be designated for future issuance requests on Justin Sun’s decentralized network.

    At the same time, on-chain surveillance shop LookOnChain reported a particular crypto whale who has been the recipient of at least $1.1 billion USDT within a 30-day period, from Oct. 20 to Nov. 21.

    The whale has deposited some of these assets on exchanges like Binance, Coinbase, Kraken and OKX, likely to purchase cryptocurrencies available on these platforms. 

    This sort of activity is typically flagged as a bullish indicator and a signal that “smart money” is accumulating tokens ahead of significant price movements. USDT’s market cap was up to $88 billion at press time, a $20 billion increase since the start of 2023 according to Coingecko.

    crypto.news cited a report that said digital asset inflows in 2023 had surpassed levels seen throughout 2022, following an upturn in demand for crypto investment products. Coinshares noted the largest influx of money into crypto since July 2022. 

    Crypto prices have also experienced gains due to expectations that the Securities and Exchange Commission could soon approve a spot Bitcoin ETF, a development that experts say would bring billions into the Bitcoin (BTC) market. 


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    Naga Avan-Nomayo

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  • Tether’s Paolo Ardoino debunks FUD, discusses surging USDT market cap

    Tether’s Paolo Ardoino debunks FUD, discusses surging USDT market cap

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    Paolo Ardoino, Tether’s former CTO who is now the CEO of the leading stablecoin project, recently highlighted the company’s significant earnings and emphasized the global use of USDT as a hedge against inflation.

    Ardoino told the Wolf of All Streets Podcast that Tether (USDT) has grown in circulation over the past year, even as other cryptocurrencies have experienced volatility. Tether has its own equity and capital, generated through holding US treasuries and short-term investments with proper risk management. He also mentioned that Tether still holds $72.6 billion in U.S. treasury bills.

    Tether remains focused on providing a stablecoin that maintains a one-to-one value with the U.S. dollar. In the last quarter of 2022, Tether generated $700 million in profit. Despite being one of the most scrutinized companies in the world, Tether has stood the test with all the black swan events and high-profile bankruptcies in the web3 space and is working proactively with law enforcement agents, including the Department of Justice, Ardoino says.  

    The CEO noted that Tether’s mission remains to provide a stablecoin that maintains a one-to-one value with the U.S. dollar, and the company has no plans to go public. 

    The company has its own equity and capital, generated through holding U.S. treasuries and short-term investments with proper risk management.

    According to Ardoino, Tether’s USDT has grown in circulation over the past year, even as other cryptocurrencies and stablecoins have experienced volatility. Despite the bear market, USDT’s market cap is sitting above $85 billion, making it the world’s third-largest crypto. Tether’s recent profitability has led the company to consider diversification. 

    They are also planning to transform into a comprehensive tech provider, necessitating expertise in crucial fields like energy, communication, and financial infrastructure, he revealed.

    Stablecoins and regulatory turbulence 

    Stablecoins have become a hot topic in the cryptocurrency world recently, with several related stories making headlines.

    Brian Brooks, Valor Capital Group partner and former Acting Comptroller of the Currency and Binance U.S. CEO, has stated that demand for stablecoins in developing nations can make the U.S. dollar relevant again. 

    On July 27, the U.S. House Financial Services Committee made significant progress by advancing a bill aimed at creating a federal regulatory framework for stablecoins, a category of cryptocurrencies usually tied to conventional assets like the U.S. dollar. 

    The proposed legislation gives the U.S. Federal Reserve the responsibility of outlining the conditions for issuing stablecoins, all while upholding the regulatory power of state authorities. This bill was adjusted earlier to address worries expressed by certain democrats who feared that stablecoin issuers might bypass stringent oversight by choosing to operate under state regulations.

    The recent conviction of former cryptocurrency tycoon and FTX founder Sam Bankman-Fried, accused of embezzling over $10 billion from customers and investors, highlights another troubling incident in the cryptocurrency sector. Despite such alarming developments, there appears to be minimal enthusiasm for implementing clear regulatory measures.

    Last year, when cryptocurrencies faced significant downturns and several companies faced bankruptcies, the U.S. Congress explored various strategies to regulate the industry. However, progress on these initiatives has been sluggish, particularly amidst the backdrop of this tumultuous year marked by geopolitical tensions, inflation concerns, and the impending 2024 election.

    President Joe Biden, who issued an executive order concerning government supervision of cryptocurrency, directed the Fed to assess the potential creation of a digital currency. 


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    Ogwu Osaemezu Emmanuel

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  • Europe’s Bitcoin miner secures €575m debt financing from Tether

    Europe’s Bitcoin miner secures €575m debt financing from Tether

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    Northern Data Group says the financing will strengthen its ability to invest in “the most sophisticated hardware available.”

    Northern Data AG, a German company focused on Bitcoin (BTC) mining, has secured a €575 million debt financing provided by stablecoin issuer Tether Group.

    In a press release on Nov. 2, the Frankfurt-based company called the financing a “strong endorsement” of its strategy and “potential dominance in the marketplace.” Northern Data will use the proceeds to invest in the hardware available to unlock access to “Generative AI technology in Europe,” the company said.

    The financing is also expected to expand Northern Data’s portfolio of data centers through Ardent Data Centres to enhance the company’s existing operations.

    “Northern Data Group is a trailblazer in this domain and has already demonstrated impressive execution of its ambitious growth strategy.”

    Tether Group incoming CEO Paolo Ardoino

    The financing comes a few weeks after Tether announced a collaboration with Northern Data Group to focus on initiatives around AI, peer-to-peer communications, and data storage solutions.

    While Tether did not disclose any figures related to the collaboration, Forbes said Tether was taking on a 20% stake in the Bitcoin miner who was planning to rent the $10,000 chips to AI startups. Yet, Tether later said that Forbes’ report had some inaccuracies in the stake size of the investment.

    In late October, Tether shared its assurance opinion for Q3 2023, reaffirming the accuracy of Tether’s reserves report. Notable findings included cash and cash equivalent reserves standing at 85.7%, mostly comprised of U.S. T-Bills, in the amount of $72.6 billion between direct and indirect exposure.


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    Denis Omelchenko

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