Market Cap of World’s Largest Stablecoin USDt Surpasses $160 Billion Milestone

Published [Date]

The market capitalization of Tether’s USDt stabilized the world’s most traded digital token has surpassed $160 billion for the first time, marking a significant achievement described by Tether CEO Paolo Ardoino as “a new mind-blowing milestone.”

In a Thursday post on X, Ardoino celebrated the volume’s growth, citing it as a clear indicator of USDt’s expanding role as a “digital dollar for billions of people living in emerging markets and developing countries.” USDt recently crossed the $150 billion threshold in May.

Ardoino previously highlighted that USDt (USDT) boasts a global user base exceeding 400 million people, expanding by 35 million wallets each quarter, primarily within emerging markets serving as a reliable dollar substitute.

Distribution Across Blockchains

According to data from DefiLlama, Tron hosts the highest USDt supply, which accounts for approximately $81 billion. Ethereum follows, with around $65 billion held on its network. Issuance on other platforms is significantly smaller, amounting to $6.8 billion on the BNB Chain, $2.3 billion on Solana, and $1.1 billion on Polygon.

Related: First crypto bill vote fails to get 100% Republican support despite Trump’s call

Reserves Underpinning USDt

Backing USDT’s reserves according to Tether’s attestations consists mainly of cash and cash equivalents—with short-term U.S. Treasuries forming the bulk of the portfolio at 81.5%—and a smaller proportion from Bitcoin (BTC), accounting for 5.1% (c.$10.8 billion).

Tether holds over $127 billion in U.S. Treasuries as of the Q2 2025 period, ranking the company as the 18th largest holder globally alongside nations like South Korea and Germany. The company reported over $1 billion in operating profit during Q1.

The stablecoin issuer has shown consistent activity, recently minting another $1 billion worth of token output. Additionally, Tether acknowledged allocating over $4 billion across new token mints in the prior week.

Separately, Tether announced plans to cease USDt redemption services on five older legacy blockchains commencing September 1. These include the Omni Layer, Bitcoin Cash SLP, Kusama, EOS (operating via Vaulta), and Algorand networks. The stated rationale for this move is to concentrate resources on platforms presenting better scalability, active developer communities, and stronger user engagement.

Related: Legacy finance discovers stablecoins as JPMorgan, Citigroup consider market entry

Stablecoin Market Growth Amid Regulatory Clarity Focus

The overall trading volume exhibited by stablecoins has surged dramatically, positioning fiat-pegged digital assets as a key internet settlement infrastructure. Notably, in 2024, transaction volumes recorded for stablecoins surpassed combined Visa and Mastercard volumes for the year.

The accelerating adoption appears to be prompting action from the Trump administration, spearheaded by the anticipated Generational Investing And Value Stability (GENIUS) Act. Championed by the administration, the bill achieved bipartisan support in the Senate Banking Committee and successfully passed the Senate in June. However, the measure recently stalled in the House of Representatives following procedural obstacles in the political body.

A formal vote on the standalone GENIUS Act was scheduled for Thursday, indicating ongoing regulatory momentum in the stablecoin space.

Magazine: Will Robinhood’s tokenized stocks REALLY take over the world? Pros and cons