USDT Hits $100 Billion Milestone as Tether Plans Stablecoin Recovery Tools

USDT Hits $100 Billion Milestone as Tether Plans Stablecoin Recovery Tools

On the day USDT reached a milestone $100 billion market cap, the company behind the stablecoin, Tether, announced recovery plans for holders if a blockchain was ever disrupted.

The $100bn market cap is a testament to the value of stablecoins in both the cryptocurrency realm and across TradFi, but it, at times, has been a rocky road to reach such widespread adoption.

On March 4, Tether released a recovery process to protect users’ funds if a blockchain is disrupted, as it attempts to allay concerns about the risk of using USDT.

USDT is now the third largest cryptocurrency by market cap, behind Bitcoin and Ethereum — with BTC itself narrowing in on its own ATH.

 

 

Key Takeaways

  • Tether, the stablecoin behind USDT, has hit a $100 billion market cap milestone.
  • With its widespread adoption on 14 blockchains, especially on the Tron network, Tether has become the third-largest cryptocurrency, trailing only Bitcoin and Ethereum.
  • In response to concerns about blockchain disruptions, Tether has introduced a recovery plan to safeguard users’ funds.
  • Users will be able to validate a transaction to another chain if disruption occurs.
  • Concerns about Tether’s backing have persisted since its inception, but the company seems to be shaking the reputation off through closer scrutiny of its reserves.

Tether tokens are available on 14 blockchains and have become especially popular on the Tron network, where low transaction fees are encouraging users in certain countries to buy and sell USDT as an alternative to devalued local currencies.

Tron has overtaken the Ethereum chain for the largest share of USDT in circulation, accounting for $50.4 billion compared with $40.6 billion on Ethereum, according to DeFi Llama data.

USDT Protection if a Blockchain Goes Offline

The new recovery tool aims to enable users to maintain access to their Tether stablecoins if the blockchain they are hosted on goes down.

The company said:

“In the event that any blockchain on which USDT is available becomes disrupted, Tether has developed and will implement its proactive measures to ensure uninterrupted accessibility for our holders, and safeguarding users’ accessibility to their USDT.”

Users would be able to migrate their USDT tokens to another blockchain through a web interface or command-line tools by cryptographically signing a migration request to verify ownership.

The web-based option supports popular browser extension wallets and hardware wallets, while the command-line interface allows users to enter their private key directly, enabling them to sign the request using an open-source script on their local machine.

Why USDT is Surging

Interest in crypto has surged since the approval of several bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission in January, in turn increasing demand for USDT as an on-ramp and off-ramp to convert funds to and from cryptocurrencies such as bitcoin.

Trading volumes in investment products reached a record of over $30 billion last week, driven by ETF demand, according to digital asset manager CoinShares, at times representing 50% of global Bitcoin daily trading volumes on trusted exchanges.

Total assets under management (AUM) reached $82.6 billion, approaching the all-time high of $86 billion at the peak of the market in early November 2021.

Fiat currency-pegged stablecoins such as Tether typically mint (or create) new tokens when users submit a transaction to convert their fiat at a value of 1:1.

So if a user requests to buy $100 worth of a stablecoin, 100 tokens are minted.

But Tether recently authorized a mint of $1 billion in USDT on the Ethereum blockchain to replenish inventory in preparation for an increase in issuance requests and swaps between blockchains, according to a post on X, formerly Twitter, by Tether’s chief executive officer, Paolo Ardoino.

 

Ardoino expects crypto demand to increase as more funds and companies invest in Bitcoin now that the ETFs give them the legitimacy that they need to convince accountants and auditors they should hold some on their balance sheets.

Ardoino said in a panel discussion last week:

“We are going to see a wide range of hedge funds and pension funds that will start to add Bitcoin to their portfolio now that the Bitcoin ETF is out there.

“More and more fund managers are interested in starting to add up to 5% of their portfolio into Bitcoin.

“But ultimately one of the most interesting things is companies more and more will start keeping part of their unused balance sheet in Bitcoin… and that will grow over time.”

Stablecoins are also at the forefront of retail interest in crypto.

Intergovernmental blockchain expert Anndy Lian, speaking to Techopedia about Tether, said:

“Tether is a remarkable achievement in the cryptocurrency space, as it provides a stable and convenient way to use fiat currencies on the blockchain.

“USDT as stablecoins that are pegged 1-to-1 with a matching fiat currency are widely adopted across major exchanges, OTC desks, and wallets, and have surpassed Bitcoin in terms of trading volume.

“USDT is a sign of how useful stablecoins are in the world, as they bridge the gap between the traditional and the digital financial systems.

“They offer the benefits of both worlds: the stability and familiarity of fiat currencies, and the speed and transparency of the blockchain. It also reduces the volatility and complexity that are often associated with cryptocurrencies, making them more accessible and appealing to a wider audience.

Tether’s reliance on a “trust me” status has raised doubts and suspicions among some investors and observers, who question the legitimacy and sustainability of Tether’s operations.

“Fast forward to today, Tether has refined its operations and is the widely used stablecoin in the world now. In my humble opinion, doubts about them have gone down a lot.”

“Stablecoins are becoming increasingly important,” according to Dina White, General Counsel at Zodia Markets, a digital asset brokerage and exchange platform.

“We are seeing this at Zodia Markets, particularly due to cross-border payment efficiencies and cost-savings. And they could become a widespread means of retail payment.”

Tether Strives for Legitimacy Amid Controversy

Tether’s growing popularity among crypto users extends to criminal groups, which are increasingly using USDT to transfer and launder money.

A recent United Nations Office on Drugs and Crime (UNODC) report on organized crime in East and Southeast Asia (PDF) found that “USDT on the TRON155 blockchain has become a preferred choice for regional cyberfraud operations and money launderers alike due to its stability and the ease, anonymity, and low fees of its transactions.”

The report added: “Between September 2022 and September 2023, a recent fund audit of USDT-based transactions by one independent blockchain data analysis company found transactions totaling 17.07 billion USDT connected to underground currency exchanges, illegal commodity trades, unlawful collection and payment processes, and various criminal activities.

“Law enforcement and financial intelligence authorities in East and Southeast Asia have also reported USDT among the most popular cryptocurrencies used by organized crime groups, demonstrated by a surging volume of cyber fraud, money laundering, and underground banking-related cases.”

Tether responded to the report with criticism that “the UN’s analysis ignores the traceability of Tether tokens and the proven record Tether has of collaborating with law enforcement.

“We are disappointed in the UN’s assessment that singles out USDT highlighting its involvement in illicit activity while ignoring its role in helping developing economies in emerging markets, completely neglected by the global financial world simply because servicing such communities would be unprofitable for them.

“Rather than focusing solely on risks, the UN should also discuss how centralized stablecoins can improve anti-financial crime efforts.”

Tether stated that it collaborates with the US Department of Justice (DoJ), the Federal Bureau of Investigations (FBI), and the US Secret Service (USSS) to monitor USDT tokens, ensuring that traceability surpasses “traditional banking systems that for decades have been the vessel for laundering substantial sums proven by the fines that have been levied on them.”

Tether has also developed a tool to monitor secondary markets with blockchain analysis firm Chainalysis.

“Tether tokens, using public blockchains, make it possible to meticulously track every transaction, making it an impractical choice for illicit activities. This is evident in our freezing of more than US$300 million within the last few months, showcasing our commitment to combating the criminal use of cryptocurrencies,” the statement added.

Is Growing Tether Usage Supported by Real Value?

Launched in 2014, Tether has long been controversial because of speculation about whether the full value of USDT in circulation is backed by real collateral.

In 2021, Tether paid fines of $41 million to the Commodity Futures Trading Commission (CFTC) and $18.5 million to the New York Attorney General’s Office for falsely claiming that USDT was backed by US dollars on a 1:1 basis between 2016 and 2019.

The company now publishes daily reserve data, monthly reports, and quarterly reviews breaking down its reserves, which it says are independently audited.

Its most recent report for December 2023 showed total cash holdings of $82.1 billion, $3.5 billion in precious metals, $2.8 billion in Bitcoin, $3.8 billion in other investments, and $4.8 billion in secured loans, along with $44 million in corporate bonds.

 

 

 

Source: https://www.techopedia.com/usdt-hits-100-billion-milestone-as-tether-plans-stablecoin-recovery-tools

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Hong Kong’s Plans to Greenlight Spot Crypto ETFs

Hong Kong’s Plans to Greenlight Spot Crypto ETFs

Well, it seems that Hong Kong is seriously considering allowing spot crypto ETFs as it aims to establish itself as the hub for ‍crypto⁣ activities in Asia. This potential move by Hong​ Kong has caught the attention of financial news‍ outlet BNN Bloomberg, and they have delved into the subject. Let’s explore the ⁤discussions surrounding the authorization of‍ spot crypto ETFs and⁤ how it could position Hong Kong​ in the ever-evolving world of digital assets.

Hong Kong Poses Competitive ‌Threat To⁣ Asian Crypto Hubs

As the cryptocurrency market continues to expand and⁤ mature, the race ‍is on to establish dominant ‌hubs across Asia. Recently, Hong Kong ​has entered the race,⁢ exploring ways to authorize the trading ⁢of crypto-based Exchange Traded Funds (ETFs). These⁣ investment funds, traded on stock exchanges much ‍like traditional stocks, would offer a direct investment into the rapidly evolving world of cryptocurrencies. Richard ‍Douglas from ‍Saxo Markets has highlighted the potential benefits for local retail investors, who are keen to engage with this new asset class, but are often held back by the complexities and volatility inherent to the crypto market.

In the heart ‌of this ​potential shift is the idea of ‘Spot Crypto ETFs’.‍ A Spot ETF,‌ unlike regular ETFs, ‍would allow investors to directly hold actual cryptocurrencies rather⁤ than investing in a portfolio ‍of ⁤assets which track ⁤the underlying crypto. As of now, Hong Kong officials are assessing the feasibility and impacts of permitting‍ such investment vehicles. This initiative has‍ already seen some early‍ support ‍from financial services giant HSBC. In fact,‍ HSBC has begun offering trading of⁤ Crypto-linked ‍ETFs to ⁢their Hong⁢ Kong-based‍ customers, demonstrating an ​institutional acceptance of these novel financial ‌products.

But‌ what does this mean for‌ the broader Asian crypto landscape? By actively considering such progressive steps, Hong Kong is positioning ⁤itself as a major player in the‍ Asian cryptocurrency⁤ arena. This, in ⁤turn, could pose a competitive challenge to‌ other established or emerging crypto hubs across the region. However,⁤ the ultimate ⁣impact will depend ⁤on the delicate balance between innovation and regulation. While greater institutional acceptance and investor protections could make the crypto markets more accessible, ‍the‌ need for robust oversight and transparency remains ​paramount to ensure the⁢ continued growth and stability of these burgeoning digital assets.

The Potential of Spot Crypto ⁢Exchange-Traded Funds ​In Hong Kong

The move means an enormous‍ step forward considering⁢ that the Hong Kong Exchange (HKEX) pioneered the offering of crypto asset exposure through ETFs, further consolidating​ their footprint‍ in blockchain technology.

However, it’s essential‌ to note that while the city ⁤has shown openness to derivatives-based​ products offered‌ on exchanges specified ⁢by the Securities and Futures Commission (SFC), retail investors have faced roadblocks. To explain, a derivative-based⁢ product like a Bitcoin futures ETF, allows investors⁤ to gamble on the price of Bitcoin at ​a future date, instead of‌ buying the cryptocurrency in the present. Retail investors, mainly everyday individuals investing smaller amounts, have not yet had the opportunity to participate in these kinds of investments.

Leading technological ⁤conglomerates like Samsung ⁤Asset Management have already indicated ‍their interest in stepping into the arena, following their Bitcoin‌ futures ETF in Hong Kong. Such decisions will​ likely inspire other⁤ corporations to follow​ suit, escalating the demand and bringing spot crypto⁤ ETFs into​ regular ‌use. This success will lay a solid foundation for Hong Kong, ​paving the way to becoming a leading hub‌ for digital asset ⁤investment in Asia, and offering retail investors more opportunities to engage in the world ​of crypto assets., which cannot be understated, ⁢as their acceptance will fuel innovation, present ​diversified investment opportunities, and anchor a new era ⁣of financial ‍inclusion.

Unlocking ⁤Investment Opportunities ⁤With Hong Kong’s ETF Initiative

The news that​ Hong Kong regulators are considering allowing retail-oriented crypto Exchange Traded Funds ⁢(ETFs) comes as an‌ exciting development. As the city’s Securities ⁢and Futures Commission (SFC) proceeds with this plan, it ‍hints at the⁢ dawn of a new era in ​Hong Kong’s virtual assets sector. The move expands ‌the​ regulatory perimeter, opening ‍doors for fresh investment possibilities in the burgeoning field of crypto-assets.

At its core, an ⁤ETF is a type⁤ of security that tracks‍ an index, sector, commodity, or ​other asset, which can be purchased or sold on a stock exchange⁣ the same way a regular stock ⁣can. A crypto ETF, too, ⁢operates ⁣on the same principle but tracks one or more digital tokens. For the newcomers, this ⁢can be an ⁤attractive investment avenue as⁣ it​ provides ​them with⁢ a ‍relatively safe and regulated method to⁢ gain exposure to the often volatile crypto markets without owning the ‌underlying digital assets themselves.

This step indicates a major ⁢shift in‌ investment norms‍ and is ⁣a beacon for crypto firms and ⁢potential investors. Realizing the increasing interest and participation in ‌digital ⁤currencies,‌ Hong Kong aims to introduce new requirements for both spot-crypto and ETF investments. This initiative marks a significant stride in reinforcing its ‍position as a major fintech hub in Asia. Seizing this progression could be instrumental in promoting a wider acceptance and ‌understanding of blockchain⁣ technologies and cryptocurrencies, ⁤while ensuring investor protection in the thriving digital finance⁢ landscape.

Legislative Hurdles And Regulatory‌ Challenges In Crypto ETF ⁢Trade

Interest in these innovative financial products is soaring across the globe; they allow market ⁣participants to effectively‌ speculate​ on the potential future ​price movements of a given cryptocurrency without having ​to own it directly. But, as industry analyst ⁤Anndy Lian observed, the rise of crypto ETFs also poses significant legislative and regulatory challenges.

Among the complexities ‌to be addressed by regulators are custody issues.⁢ The SEC, the U.S. financial⁤ regulator, has been ⁣implementing new ⁣regulations surrounding the custody‌ of digital assets. Specifically, it is ‌concerned about how ownership is managed in the​ crypto universe since these assets are stored intangibly in distributed networks. To address this, the SEC​ has begun‍ to ​shift the grounds for denial of crypto ETFs from concerns about market manipulation to issues of rightful ownership and custody. This shift could potentially throw a legal wrench into Hong Kong’s plans.

Equally noteworthy are the challenges posed by cryptocurrencies themselves. Taking the cryptocurrency Ethereum as ⁢an example,‌ it ‌stands out for its ‍ability to ⁢enable smart contracts and decentralized applications. However, its intricacies also bring about certain difficulties. Since⁤ it is not solely a medium ‌of exchange like Bitcoin, but also ⁢a platform for building‍ applications, regulators ⁤might find it more challenging to categorize ​and formulate regulations around it. Nevertheless, ‍if‍ Hong Kong can successfully navigate these legislative hurdles and regulatory ‍challenges, it could cement its place as a leading crypto hub in Asia.

Efficient Ways To Capitalize On ⁢Hong Kong’s Potential Crypto Boom

However, the approval⁢ of these ETFs ⁤is yet⁢ to be confirmed, as regulators weigh⁢ the benefits and risks linked⁢ to this new asset class. Amid this backdrop of opportunity, individuals ‍keen on⁣ capitalizing on Hong‌ Kong’s potential crypto ​growth need to remain patient, stay informed, and possibly consider financial advice from‌ professionals in the crypto field. This strategic approach would offer the best chance of maximizing potential gains while minimizing possible losses. Cryptocurrency, while ⁢unpredictable, offers new avenues for technological innovation and investment growth.

In conclusion, the ‍proposed initiative by Hong⁢ Kong to allow spot crypto ETFs marks a significant step in its ambition to establish itself​ as​ the leading ⁣cryptocurrency hub in Asia. With its forward-thinking approach, the‍ city is positioning itself to ⁤attract investors and foster ⁢innovation in the ⁤rapidly evolving ‍crypto ‌market.

 

 

 

Source: https://techmalak.com/hong-kongs-plans-to-greenlight-spot-crypto-etfs/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Baby Cake Teams Up with Luna PR to Cook Up More Juicy Marketing Plans

Baby Cake Teams Up with Luna PR to Cook Up More Juicy Marketing Plans

The entire Baby Cake team is excited to announce our partnership with Luna PR, an award-winning crypto and PR global marketing agency headquartered in Dubai.

We look forward to collaborating with Luna PR to bolster our long-term marketing strategy, reach more people through news, and attract more investors and buyers to the world’s first CAKE reflection token rewarding holders with CAKE instead of tokens.

Since 5% of each Baby Cake transaction is allocated to marketing efforts, we’re beyond excited to harness Luna PR’s talented team and get to work, both to propel our most ambitious projects forward and reward our active community.

Luna PR currently works with clients across five continents. They’ve served notable projects like Huobi, Paxful, eToro, Nexo, and EverRise.

Baby Cake: The Next Gen Of BSC Yield-Gen Contracts

With a unique volume-triggered reward system, $BABYCAKE token holders can simply HODL to receive hourly CAKE in their wallet. Baby Cake is a yield-generating contract based on Binance Smart Chain (BSC).

We’re also the first platform where users do not need to manually claim earned CAKE.

Users must hold at least 200,000 tokens to receive passive rewards. It’s advantageous to hold tokens since 7% of every buy/sell is redistributed to all holders. 3% of each transaction is converted into PancakeSwap liquidity. An extra 1% sale fee prevents the possibility of whales dominating and reduces swing trades. The contract can also be modified depending on market conditions.

Our new partnership with Luna PR is just the latest in a string of notable news items for Baby Cake fans over the past several days.

Lots To Look Forward To For The Rest Of 2021

We’re still gearing up for a September launch of BabyCakeSwap. In October, we’ll be at the Dubai DeFi summit & crypto expo and look forward to releasing our Baby Cake passive income generator app.

Earlier this month, Baby Cake warmly welcomed Anndy Lian as an advisor. Currently serving as the Chief Digital Advisor to the Mongolian Productivity Organization, Lian is a well-known business and intergovernmental strategist. He’s also the author of Blockchain Revolution 2030.

Finally, be sure to stay on the lookout for Baby Cake’s special daily event announcements. We’ve already spread the word about ‘Diamond Hands Sundays’ – where there’s 12% CAKE rewards! The next day ushers in ‘Buy Back Mondays’ where collected rewards are used to purchase back Baby Cake tokens.

Don’t forget to keep up with the latest Baby Cake news by following us on TwitterReddit, and Telegram, or by checking out our website!

Source: https://www.newsbtc.com/press-releases/baby-cake-teams-up-with-luna-pr-to-cook-up-more-juicy-marketing-plans/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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