Why It’s Good News for Crypto

Tether, the world’s largest stablecoin issuer with over $143 billion in circulation, is preparing to enter the US domestic market with a new dollar-pegged stablecoin. With this new launch, Tether plans to compete directly with key players in the US stablecoin market like the Trump family-backed World Liberty Financial and its USD1 coin. Tether to compete with USD1 CEO Paolo Ardoino revealed these plans during a CNBC interview at the Token2049 conference in Dubai. According to the CEO, the stablecoin will launch by the end of 2025. He also mentioned that the company’s US-focused stablecoin would be different from its international USDT offering. Its launch timeline is dependent on “the timeline of the final legislation.” The stablecoin landscape is becoming increasingly competitive as Tether prepares to challenge World Liberty Financial’s USD1, a stablecoin initiative backed by Eric Trump and Donald Trump Jr. Eric Trump has been quite vocal about crypto and even stated that crypto could replace SWIFT payment system. Tether’s planned entry into the US domestic market is a major move as the regulatory environment is changing under the current administration. World Liberty Financial has already announced its USD1 token, which promises to be fully backed by short-term US government treasuries, US dollar deposits, and other cash equivalents. The token is initially planned for launch on Ethereum and Binance Smart Chain. Tether’s US market entry follows Ardoino’s increased presence in Washington, where he has engaged in meetings with lawmakers and participated in crypto industry events. This approach, characterized by some as a charm offensive, includes a private lunch with Senator Bill Hagerty and various networking activities with policy influencers. Tether mentioned legal cooperation as a central element of its messaging to US policymakers. “There is no company... even in the traditional financial system, that has such a breadth of collaboration with law enforcement,” Ardoino stated during his interview. Why the firm’s US launch could be good news for crypto Tether’s goal of entering the US market may create a more competitive cryptocurrency ecosystem, more transparency, and tie into reputable financial support. Joining Ardoino pointed out the strength of the company’s financials and operational transparency as an advantage, creating possible new industry standards. The stablecoin issuer has made notable developments on previous issues revolving around reserves. Per Tether’s most recent attestation report, the company reported it now has approximately $120B in US Treasuries; and the total assets amount at least to $149.27B with $143.68B in liabilities – creating at least a $5.6B surplus. Tether’s partnership with Cantor Fitzgerald to oversee its Treasuries gives the company some institutional credibility. Ardoino was careful to avoid a potential conflict of interest stating that he does not talk to Secretary Lutnick directly because of “proper walls,” but did say Tether has “great relationships with many people in the US and as well now in Washington.” The company’s quarterly growth metrics also show increasing adoption, with approximately 46 million new USDT wallets created during the most recent reporting period. This is a 13% increase from the previous quarter. This is an indication of growing user confidence despite past regulatory challenges. This includes an $18.5 million settlement with the New York attorney general in 2021 over allegations regarding misrepresentations about its reserves. As per Ardoino’s recent tweet, he expects a 10x projection for Tether in the next five years. He mentioned that Tether products could reach almost 3 billion people. The stablecoin’s growth could also be good news for crypto as 37% of the global users use USDT for savings, with an average daily volume of 30 billion. ✓ Share: Vignesh Karunanidhi Vignesh Karunanidhi is a seasoned crypto journalist with nearly 7 years of experience in the cryptocurrency industry. He has contributed to numerous publications, including WatcherGuru, BeInCrypto, Milkroad, and authored over 10,000 articles Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss. Source: https://coingape.com/tether-goes-head-to-head-with-trumps-stablecoin-usd1-why-its-good-news-for-crypto/