Outside Source
Valued at more than $141 billion, Tether’s USDt is the world’s largest stablecoin by market capitalization and usage.
News
Tether has selected Arbitrum to be the infrastructure provider for USDT0, the company’s new crosschain US dollar stablecoin.
According to a Feb. 11 announcement, Arbitrum One will serve as the main hub linking USDt (USDT) deployments on Ethereum, Tron, TON and Celo to the newly created USDT0. Specifically, Arbitrum’s Legacy Mesh technology will provide a native solution for transferring USDt between these major chains.
Steven Goldfeder, the CEO of Arbitrum developer Offchain Labs, said the Legacy Mesh technology provides users and developers with “deep, liquid markets regardless of the blockchain” they’re using.
Goldfeder said the new solution will promote “broader USDt adoption” while increasing the stablecoin’s scalability across networks.
USDt is already the world’s most widely used stablecoin, with a total market capitalization of more than $141 billion, according to CoinMarketCap. Circle’s USD Coin (USDC) is a distant second with $59 billion in total value.
Tether accounts for more than 61% of the $230 billion stablecoin market. Source: CoinMarketCap
Tether launched USDT0 in collaboration with LayerZero on Jan. 16. The crosschain stablecoin’s first deployment was on Ink, crypto exchange Kraken’s scaling solution.
Tether declined Cointelegraph’s request for comment.
Related: Tether’s stablecoin to be integrated into Bitcoin Lightning
Tether’s surging profits
Despite regulatory uncertainty over USDt’s status in the European Union and growing competition from other stablecoin issuers, Tether remains hugely profitable, both in absolute terms and on a per-employee basis.
As Cointelegraph recently reported, the company posted a record-breaking profit of $13 billion in 2024 thanks to its massive stockpile of US government bonds collecting interest.
Tether’s 2024 financials. Source: Tether
By the end of 2024, Tether’s US Treasury portfolio was worth roughly $113 billion. That’s bigger than all but 17 of the world’s governments, the company said in July.
The company’s success stems from the huge uptake of stablecoins in the cryptocurrency market and the technology’s potential to transform traditional remittance services.
As Chainalysis reported in December, “cross-border payments and remittances are among the most transformative use cases for stablecoins,” providing cheaper alternatives to established remittance services.
Chainalysis showed how sending a $200 remittance from Sub-Saharan Africa using a stablecoin is roughly 60% cheaper than traditional fiat-based methods.
Magazine: Ethereum L2s will be interoperable ‘within months’ — Complete guide
This article first appeared at Cointelegraph.com News
