The market cap of Tether’s USDt, the world’s largest stablecoin, has surpassed $160 billion for the first time, a “new mind-blowing milestone,” according to Tether CEO Paolo Ardoino.
In a Thursday post on X, Ardoino called the achievement a testament to USDt (USDT)’s growing role as the digital dollar for “billions of people living in emerging markets and developing countries.” USDt crossed $150 billion in May.
Ardoino has said that USDt is used by more than 400 million people worldwide, expanding by 35 million wallets each quarter, especially in emerging markets where it serves as a reliable dollar substitute.
The blockchain distribution of USDt shows that Tron hosts the highest USDt supply, now accounting for about $81 billion, compared to Ethereum’s $65 billion, according to data from DefiLlama. USDt issuance on other networks is significantly smaller, totaling $6.8 billion on BNB Chain, $2.3 billion on Solana and $1.1 billion on Polygon.
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USDt backed by cash and US Treasurys
According to Tether’s attestations, cash and cash equivalents, primarily short-term US Treasurys, constitute 81.5% of USDT’s backing reserves, with Bitcoin (BTC) accounting for 5.1%.
Tether holds over $127 billion in US Treasurys as of Q2 2025, ranking as the 18th largest holder globally, alongside countries like South Korea and Germany. The company posted over $1 billion in operating profit in Q1.
The stablecoin issuer has also been consistently minting new tokens. On Wednesday, Tether minted another $1 billion, with more than $4 billion over the past week alone.
Last week, Tether announced it will stop allowing redemptions of USDt on five legacy blockchains, including Omni Layer, Bitcoin Cash SLP, Kusama, EOS (now Vaulta), and Algorand, starting Sept. 1.
The move aims to let the company focus on blockchains with better scalability, more developer activity and stronger community engagement, according to CEO Ardoino.
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Stablecoin market expands amid growing regulatory clarity
The stablecoin market has been expanding quickly, with fiat-pegged digital assets increasingly seen as the internet’s go-to settlement layer. In 2024, stablecoin transaction volumes even surpassed those of Visa and Mastercard combined.
The growing momentum comes as the Trump administration has prioritized stablecoin regulation, with the GENIUS Act leading the charge. The bill gained bipartisan support in the Senate Banking Committee and passed the Senate in June.
However, it stalled in the House of Representatives after a group of lawmakers blocked a key procedural vote on Tuesday. The House is set to vote Thursday on the GENIUS Act as a standalone measure.
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