Tether is the largest company in the digital asset industry and has continuously made progress and innovations over the past decade, shaping the evolving landscape of digital assets. Since its founding in 2014, Tether launched the world’s first stablecoin, bridging traditional currencies with the rapidly growing digital asset market and fundamentally transforming the financial sector. Over the past decade, Tether has pioneered stablecoins and evolved into a diversified technology giant, setting new standards for financial accessibility, innovation, and stability.

From its inception, Tether introduced the groundbreaking concept of a digital currency (USDT) pegged to the US dollar, providing an unprecedented solution to the volatility of the cryptocurrency market. Today, USDT is the most widely used stablecoin, with a market capitalization nearing $120 billion, making it an indispensable pillar of the global digital economy.

Significant growth

The number of active users of USDT has grown significantly, especially when viewed from a year-over-year perspective. In 2024, the number of users on both blockchains and centralized exchanges, particularly in emerging markets, surged to hundreds of millions, reflecting a substantial increase in USDT’s utility and popularity. Weekly, monthly, and daily active users have also shown a continuous upward trend, solidifying USDT’s position as the preferred stablecoin for daily transactions and institutional use cases.

The year-over-year growth has been particularly notable, with new users increasing by 24% over the past 12 months and by 50% in the previous 12 months. This accelerated adoption of USDT occurred during a critical period of market volatility and growing interest in decentralized finance. Tether’s multi-chain support across blockchains like Tron, TON, and Ethereum has further contributed to expanding its user base, allowing retail and institutional users to access and use the stablecoin more easily and at low cost on their preferred platforms. This year-over-year growth reflects the rising demand for USD₮ in digital finance and its increasingly important role as a liquidity pillar in the cryptocurrency market.

Promote the global dominance of the U.S. dollar

Tether has played a critical role in reinforcing the dominance of the U.S. dollar overseas. It provides reliable, dollar-backed transactions in markets where access to the traditional banking system is limited or nonexistent. With over 350 million users globally, Tether offers financial tools and digital currencies that promote financial inclusion, particularly in emerging markets.

Tether holds a large amount of U.S. Treasury bonds, further enhancing the global influence of the dollar and solidifying USDT’s position as a trusted digital representation of the world’s reserve currency. As of the second quarter of 2024, Tether directly and indirectly held over $97 billion in U.S. Treasury bonds. This makes Tether one of the top 20 buyers of U.S. Treasury bonds, surpassing countries like Germany, the United Arab Emirates, and Australia in holdings. By backing its stablecoin with these high-quality assets, Tether not only ensures the security of USD₮ but also strengthens the stability and prominence of the U.S. dollar in global markets.

Beyond Stablecoins: From USD to Global Token Adoption

Although Tether was initially based on the U.S. dollar, it has since expanded to include tokens pegged to other fiat currencies. This diversification has enhanced its ability to serve a broader 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 for digital transactions, and Tether continues to lead in driving adoption, surpassing leading tech companies in per capita profitability. These developments highlight how Tether is reshaping digital finance and laying the groundwork for other companies to follow.

Product market fit and growth

Tether has successfully identified a suitable product-market fit for stablecoins, enabling it to thrive as an industry leader and play a critical role in driving global stablecoin payments. Stablecoins are no longer niche products; they have integrated into everyday financial transactions, from remittances to corporate payments. Tether’s strong commitment to understanding user needs, engaging with regulators, and advancing technology has solidified its position as a cornerstone of stablecoin infrastructure.

Tether’s vision for the next 10 years

Although Tether has made significant progress, there remain substantial issues to address, particularly regarding regulatory transparency, scalability, and the practical utility of digital currencies. Tether is actively seeking solutions in these areas, including advanced blockchain integration and a new line of stablecoin products designed to meet the evolving demands of the financial ecosystem.

Looking ahead, Tether envisions a world where digital currency payments are seamless, accessible, and inclusive for everyone. The next decade for Tether will focus on enhancing global financial inclusion, expanding its token issuance, and promoting innovation in areas such as artificial intelligence, energy sustainability, and blockchain education.

Milestones of Tether’s First Decade:

• 2014: Launched the world’s first stablecoin.
• Global Impact: Over 350 million users worldwide, promoting financial inclusion in emerging markets.
• Transparency: Leading the industry in transparency through daily balance updates and independent quarterly attestations from BDO.
• Collaboration with Law Enforcement: Assisted over 180 law enforcement agencies in recovering more than $1.8 billion related to illegal activities.
• Liquidity: Demonstrated Tether’s liquidity and reliability by processing $10 billion in redemptions within a week during the 2022 UST crisis.
• Expansion Beyond Stablecoins: Launched Tether Data, Tether Finance, Tether Power, Tether Edu, and Tether Evo to broaden its influence.

As Tether celebrates its tenth anniversary, it remains focused on creating a safer, more transparent, and more innovative future for digital currencies. By setting the gold standard for stablecoin usage and leading digital financial services, Tether is shaping the next era of tech companies.

To commemorate Tether’s first decade and its vision for the next ten years, the company will soon release a documentary titled “Stability and Freedom in Chaos,“ highlighting Tether’s impact in countries like Brazil, Argentina, and Turkey, where the U.S. dollar has become a vital lifeline for millions, combating inflation and promoting global financial freedom.

statement:

1. This article is reproduced from [Golden Finance], the original title is “The Road to $120 Billion: A Review of Tether’s Development History and Outlook for the Next Ten Years”, the copyright belongs to the original author [Tao Zhu], if you have any objection to the reprint, please contact Gate Learn Team, the team will handle it as soon as possible according to relevant procedures.

2. Disclaimer: The views and opinions expressed in this article represent only the author’s personal views and do not constitute any investment advice.

3. Other language versions of the article are translated by the Gate Learn team, not mentioned in Gate.io, the translated article may not be reproduced, distributed or plagiarized.