The road to $120 billion: A review of Tether’s development and outlook for the next decade

Tether is the largest company in the digital asset industry, and 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 revolutionized the financial market by launching the world's first stablecoin, connecting traditional currencies and the rapidly growing digital asset market. Over the past decade, Tether has pioneered stablecoins and grown into a diversified technology giant that has set new standards for financial accessibility, innovation, and stability.

From its inception, Tether introduced the groundbreaking concept of a digital currency pegged to the U.S. dollar (USDT), providing an unprecedented solution to the volatility of the cryptocurrency market. Today, USDT 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

UST's number of active users has grown significantly, especially when looking at year-over-year trends. In 2024, the number of users on blockchains and centralized exchanges (especially in emerging markets) surged to hundreds of millions, reflecting a significant increase in USDT's utility and popularity. Weekly, monthly, and daily active users also showed a continued upward trend, solidifying USDT's position as the preferred stablecoin for daily 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 USDT 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-over-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 dollar’s ​​global dominance

Tether has played a key role in solidifying the dollar's dominance overseas. It provides reliable, dollar-backed transactions in markets where access to the traditional banking system is limited or non-existent. With more than 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 USDT’s position as a 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 safety of USD₮, but also enhances the stability and prominence of the U.S. dollar 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 of digital transactions, and Tether continues to lead the way in driving adoption, surpassing leading technology companies in terms of profitability per capita. These developments show how Tether is reshaping digital finance and laying the foundation for other companies.

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 global stablecoin payments. 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 has solidified its position as a cornerstone of stablecoin infrastructure.

Tether's vision for the next 10 years

While Tether has made significant progress, there are still significant issues to be addressed, particularly in terms of regulatory clarity, scalability, and the actual 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 ahead, 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 offering, and fostering innovation in areas such as artificial intelligence, energy sustainability, and blockchain education.

Milestones of Tether’s first decade:

• 2014: Launch of the world’s first stablecoin.

• Global reach: With over 350 million users worldwide, it promotes financial inclusion in emerging markets.

• Transparency: Leading the industry in transparency with daily balance updates and independent quarterly certifications from BDO.

• Cooperation with Law Enforcement: Assisted more than 180 law enforcement agencies and recovered more than $1.8 billion related to illegal activities.

• Liquidity: During the 2022 UST crisis, $10 billion in redemptions were processed in a week, demonstrating 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 10th anniversary, it remains focused on creating a more secure, transparent, and 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, 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 driving global financial freedom.