Source: Tether; Compiled by: Tao Zhu, Golden Finance
Tether is the largest company in the digital asset industry. Over the past decade, the company has continued to make progress and innovation, shaping the evolving digital asset landscape. Since its founding in 2014, Tether has launched the world's first stablecoin, connecting traditional currencies and the rapidly growing digital asset market, revolutionizing the financial market. Over the past decade, Tether has pioneered stablecoins and has grown into a diversified technology giant, setting new standards for financial accessibility, innovation, and stability.
From its inception, Tether introduced the groundbreaking concept of a digital currency (USD₮) pegged to the US dollar, providing an unprecedented solution to the volatility of the cryptocurrency market. Today, USD₮ is the most widely used stablecoin, with a market value of nearly $120 billion, and is an indispensable pillar of the global digital economy.
Significant Growth
USD₮ has seen significant growth in active users, especially when looking at year-over-year trends. The number of users on blockchains and centralized exchanges, particularly in emerging markets, surged to hundreds of millions in 2024, reflecting a significant increase in USD₮’s utility and popularity. Weekly, monthly, and daily active users also showed a sustained upward trend, solidifying USD₮’s position as the stablecoin of choice for everyday transactions and institutional use cases.
Year-over-year growth was particularly significant, with new users up 24% in the last 12 months and 50% in the first 12 months, as USD₮ adoption accelerated during a critical period of market volatility and growing interest in decentralized finance. Tether's multi-chain support for blockchains such as Tron, TON, and Ethereum has further contributed to the expansion of its user base, making it easier for retail and institutional users to access and use stablecoins on their favorite platforms with low fees. This year-on-year growth reflects the growing demand for USD₮ in digital finance and its growing role as a liquidity pillar in the cryptocurrency market.
Driving the Global Dominance of the US Dollar
Tether has played a key role in consolidating the dominance of the US dollar overseas. It provides reliable, dollar-backed transactions in markets where access to traditional banking systems is limited or non-existent. With over 350 million users worldwide, Tether provides financial instruments and digital currencies that promote financial inclusion, especially in emerging markets.
Tether’s large holdings of U.S. Treasuries further enhance the dollar’s global influence and solidify USD₮’s position as the trusted digital representation of the world’s reserve currency. As of Q2 2024, Tether directly and indirectly holds over $97 billion in U.S. Treasuries. This makes Tether one of the top 20 buyers of U.S. Treasuries, surpassing holdings of countries like Germany, the United Arab Emirates, and Australia. By backing its stablecoin with these high-quality assets, Tether not only ensures the security of USD₮, but also enhances the dollar’s stability and prominence in global markets.
Beyond Stablecoins: From USD to Global Token Adoption
While Tether was originally based on the U.S. dollar, it has expanded to other tokens pegged to fiat currencies. This diversification enhances its ability to cater to a wider range of global users and use cases, further solidifying Tether’s leadership in the stablecoin category.
Setting the Standard for Stablecoin Payments
Stablecoins have become the preferred method for digital transactions, and Tether continues to lead the way in driving adoption, outperforming leading tech companies in profitability per capita. These developments demonstrate how Tether is reshaping digital finance and laying the foundation for others.
Product-Market Fit and Growth
Tether’s success in finding product-market fit for stablecoins has enabled it to flourish into an industry leader, playing a key role in driving stablecoin payments around the world. Stablecoins are no longer niche products, but are integrated into everyday financial transactions, from remittances to corporate payments. Tether’s unwavering commitment to user demand, regulatory engagement, and technological advancement solidifies its position as a cornerstone of stablecoin infrastructure.
Tether's 10-Year Vision
While Tether has made significant progress, there are still significant issues to address, particularly in regulatory clarity, scalability, and the real utility of digital currencies. Tether is actively pursuing solutions in these areas, including advanced blockchain integrations and a new stablecoin product line designed to meet the needs of an evolving financial ecosystem.
Looking to the future, Tether envisions a world where digital currency payments are seamless, accessible, and inclusive for everyone. Tether's next decade will be dedicated to enhancing global financial inclusion, expanding its token issuance, and promoting innovation in areas such as artificial intelligence, energy sustainability, and blockchain education.
Tether’s First Decade Milestones:
2014:Launched the world’s first stablecoin.
Global Reach:With over 350 million users worldwide, promoting financial inclusion in emerging markets.
Transparency:Leading the industry in transparency with daily balance updates and independent quarterly attestations from BDO.
Working with Law Enforcement:Assisted over 180 law enforcement agencies to recover over $1.8 billion associated with illicit activity.
Liquidity:During the 2022 UST crisis, $10 billion in redemptions were processed in one week, proving Tether’s liquidity and reliability.
Expanding beyond stablecoins:Launching Tether Data, Tether Finance, Tether Power, Tether Edu, and Tether Evo to expand its impact.
As Tether celebrates its tenth anniversary, it remains focused on creating a safer, more transparent, and more innovative future for digital currencies. By setting the gold standard for stablecoin use and leading digital financial services, Tether is shaping the next era of technology companies.
To mark Tether’s first decade and its vision for the next decade, the company is releasing a documentary Stability and Freedom in Chaos, focusing on Tether’s impact in countries like Brazil, Argentina, and Turkey, where the dollar has become a critical lifeline for millions, fighting inflation and advancing global financial freedom.
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