Amid the proliferation of crypto regulatory frameworks, the stablecoin giant Tether stands out as a paradox. In fact, its USDT has just surpassed the 500-million-user mark, even as its market share declines in jurisdictions such as the European Union and the United States.
Tether: USDT’s Dominance Losing Steam
The regulatory race is underway in the world’s major jurisdictions, aimed at controlling—or supporting—the development of the cryptocurrency sector. This dynamic is now clearly driven by competition, as jurisdictions vie to establish themselves as the best home for this Web3 economy.
On one hand, crypto players are complying with the requirements imposed to obtain the necessary approvals. On the other, Tether, the global leader in the stablecoin market, finds itself excluded from these new regulatory frameworks, with its USDT already considered persona non grata in the European Union and the United States.
As a result, USDT’s market share has fallen from over 70% in October of last year to just 62.5% today. This significant decline has clearly benefited competitors, such as Circle’s USDC, which has seen an increase of nearly 6%—reaching 26%—over this period, and the Ethena protocol’s USDe, which now exceeds 4%.
Market shares in the stablecoin sector
Of course, Tether is attempting to respond by developing regulatory-compliant stablecoins, such as the USAT—specifically tailored for the U.S. market—or by partnering with regulated companies in the European Union, such as the Maltese firm StablR or the Dutch firm Quantoz.
However, the regulatory compliance (or submission?) that this kind of approach entails does not seem to be a priority for its CEO, Paolo Ardoino.
500 million users worldwide
Analysts agree on the regulatory consequences facing Tether’s dominant USDT stablecoin. Nevertheless, they also believe that this situation has a limited geographic impact.
And Paolo Ardoino is certainly not going to argue otherwise, given that the number of users is now steadily rising and has surpassed 500 million.
Tether’s USDT has officially reached 500 million users! Probably the greatest achievement in the history of financial inclusion.
Paolo Ardoino
At the heart of this growing adoption is an unprecedented expansion in the use of USDT in emerging markets seeking stable monetary tools that are independent of their governments’ decisions and policies. This presents an opportunity for Tether to highlight its positive impact in Kenya in a documentary released on the X network.
After all, the adoption of cryptocurrencies is not limited to the world’s major powers, which are attempting to control their development—almost exclusively in connection with trading operations. A genuine monetary role exists in emerging markets, at the heart of which stablecoins like USDT could play a central role, far removed from the regulatory requirements of the European Union or the United States.
