Backbone of Global Crypto Liquidity Achieved: Tether Surpasses $150B Market Cap

Tether’s USDt has crossed a historic milestone, surpassing $150 billion in market capitalization for the first time on May 12, reflecting the accelerating global adoption of stablecoins as digital financial infrastructure evolves.

Over the past 12 months, USDt’s circulating supply has grown by more than 36%, with momentum picking up sharply after November 2024. Market observers have linked this surge to broader crypto optimism following the re-election of Donald Trump as U.S. President.

With this growth, Tether now commands over 61% of the global stablecoin market, according to CoinMarketCap data. In comparison, Circle’s USDC holds nearly 25% of the market share, highlighting USDt’s leading role in the space.

As the largest and most widely used stablecoin, Tether serves as a critical liquidity source for cryptocurrency trading, making its performance a key indicator of overall market demand and investor sentiment.

The growth of Tether is part of a broader trend toward digital fiat adoption. According to Cointelegraph, recent analytics from Dune and Artemis indicate that active stablecoin wallets have increased by over 50% in the past year, rising from 19.6 million to 30 million users. This sharp increase highlights the expanding role of stablecoins in global financial ecosystems, particularly in emerging markets and decentralized finance (DeFi) applications.

A Strategic Push into the U.S. Market

Despite its international dominance, Tether's presence in the United States remains limited due to regulatory hurdles. However, the company is preparing to re-enter the American market with a new U.S.-backed stablecoin designed specifically for domestic use.

Paolo Ardoino, CEO of Tether, hinted at these plans during the Token2049 conference in Dubai, noting that this new product would be “distinct from Tether’s existing international stablecoin.” The move comes as U.S. lawmakers debate several stablecoin-related bills aimed at providing clearer regulatory frameworks for the sector.

Regulatory Challenges Ahead

One of the key legislative efforts is the STABLE Act, introduced by House Financial Services Committee Chair French Hill and Digital Assets Subcommittee Chair Bryan Steil. The bill aims to impose stricter oversight on stablecoin issuers but has faced criticism for potentially allowing weaker state-level regulations to prevail.

Former Commodity Futures Trading Commission (CFTC) Chair Timothy Massad, speaking before the House Subcommittee on Digital Assets in February, voiced concerns about the bill’s shortcomings.

He highlighted the lack of ongoing federal supervision and warned that fragmented state standards could undermine the stability and credibility of stablecoin issuers.