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October 3, 2022
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Tether’s market capitalization exceeded $ 30 billion thanks to bitcoin

Stablecoin Tether’s market capitalization (USDT) surpassed the $ 30 billion mark. This is because institutions and companies are buying bitcoin, said Tether’s CTO, Paolo Ardoino.

So far, Tether’s market value (USDT) is fence of US $ 30.5 billion, which means that there are more than 30 billion USDT in circulation, each indexed to one US dollar.

Tether has long been the biggest stablecoin on the market, but its popularity has increased even more in recent months. Why? With institutions and companies they are buying bitcoin, Tether’s CTO, Paolo Ardoino, told The Block.

Ardoino said that these large customers prefer to buy bitcoin from over-the-counter (OTC) and high-frequency (HFT) companies, rather than a single trading platform, because these companies help to prevent market movement and have better liquidity.

By having accounts on most exchanges, OTC and HFT companies spread buying pressure, reduce the impact on bitcoin price and also complete purchases more quickly, said Ardoino.

When customers of these companies wish to buy bitcoin, they send USD and then these companies convert USD to USDT into bitcoin. This method is faster and “more convenient,” Ardoino told The Block. In fact, fiduciary transfers take time to process.

Asia and Europe remain popular markets for the use of USDT, Ardoino told The Block, adding that Asia at the moment is “definitely more prevalent”.

While commerce remains the main use case for USDT, Ardoino said Tether will be “working hard” this year to expand its use cases, with a focus on retail adoption of stablecoin.

Tether is popular, but it is also controversial. Tether has never fully audited its US dollar reserves. Tether General Counsel Stuart Hoegner said recently in an interview that the company would provide details of its reservations soon.

Last week, Tether’s sister company, Bitfinex, said it paid Tether the remaining $ 550 million loan, which is at the center of a fraud investigation opened by the New York attorney general’s office three years ago. Ardoino said, since the loan is no longer present, “this should appeal to many in the crypto community.”

Source: TheBlock

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