December 31, 2024<\/p>\n\n\n\n
By Our Correspondent<\/p>\n\n\n\n
Tether Holdings, recognized as the leading stablecoin issuer worldwide, is anticipated to conclude 2024 with net profits exceeding $10 billion, as stated by CEO Paolo Ardoino.<\/p>\n\n\n\n
These profits are attributed to strategic investments in U.S. Treasuries, gold, and various securities that support stablecoins such as USDT.<\/p>\n\n\n\n
This year, Tether’s market valuation experienced a remarkable increase of $50 billion, approaching a total of nearly $140 billion. The demand for USDT, which is linked to the U.S. dollar, surged as cryptocurrencies like Bitcoin reached unprecedented highs.<\/p>\n\n\n\n
By December 2024, Tether announced that 109 million wallets now contain USDT, reinforcing its status as the largest stablecoin by market capitalization.<\/p>\n\n\n\n
Global banks are beginning to pay attention. Earlier this year, Europe\u2019s Societe Generale \u2013 Forge (SG-Forge) introduced a Euro-backed stablecoin, now accessible to retail investors.<\/p>\n\n\n\n
Other major financial entities are entering the fray. DWS, a subsidiary of Deutsche Bank, intends to launch a Euro-denominated stablecoin in 2025, while Revolut and Oddo BHF SCA are investigating similar initiatives.<\/p>\n\n\n\n
The implementation of the Markets in Crypto-Assets Regulation (MiCA) in Europe this year has further accelerated this trend.<\/p>\n\n\n\n
By offering legal clarity regarding the issuance and operation of stablecoins, MiCA has transformed the European Union into a promising environment for financial institutions exploring blockchain-based payment solutions.<\/p>\n\n\n\n
Tether\u2019s choice to cease its EURt stablecoin has also created opportunities for competitors. In the United States, banks are awaiting regulatory clarity following Donald Trump’s re-election in November.<\/p>\n\n\n\n
Visa Inc. is facilitating progress through its tokenization network for stablecoin issuance. The credit card company is partnering with BBVA on a pilot project set for 2025 and is collaborating with banks in Hong Kong, Singapore, and Brazil.<\/p>\n\n\n\n
Standard Chartered is actively pursuing new initiatives. In collaboration with Animoca Brands Ltd. and Hong Kong Telecommunications Ltd., the bank is developing HKD-denominated stablecoins as part of a pilot program sanctioned by the Hong Kong Monetary Authority.<\/p>\n\n\n\n
Stablecoins present banks with an opportunity to utilize blockchain technology effectively. The success of Tether, fueled by the demand for efficient payment solutions and the growing acceptance of digital assets, exemplifies this potential.<\/p>\n\n\n\n
JPMorgan Chase is already utilizing its blockchain technology to facilitate intra-bank transfers through tools such as JPM Coin, showcasing the significant profit potential in this area.<\/p>\n\n\n\n
Tether’s substantial $10 billion profit illustrates the financial advantages for stablecoin issuers. Additionally, banks report an increasing customer demand for these financial products.<\/p>\n\n\n\n
Nevertheless, the adoption of stablecoins is not without its challenges. A study by the European Central Bank cautioned that converting deposits into stablecoins might adversely affect liquidity ratios. U.S. banks face the complexities of reserve requirements and the potential for confusion regarding deposit insurance related to stablecoins.<\/p>\n\n\n\n
Tether’s market dominance highlights the strong demand for stablecoins, yet banks recognize an opportunity to enter this competitive space. With more than 109 million USDT wallets currently in circulation, the market is primed for innovative developments.<\/p>\n","protected":false},"excerpt":{"rendered":"
December 31, 2024 By Our Correspondent Tether Holdings, recognized as the leading stablecoin issuer worldwide, is anticipated to conclude 2024 with net profits exceeding $10 billion, as stated by CEO Paolo Ardoino. These profits are attributed to strategic investments in U.S. Treasuries, gold, and various securities that support stablecoins such as USDT. This year, Tether’s […]<\/p>\n","protected":false},"author":4,"featured_media":6945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-6942","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uncategorized"},"yoast_head":"\n