Tether, the issuer of the USDT stablecoin, experienced significant growth in its market share in 2023. According to data from The Block, Tether’s share of the global stablecoin supply increased from 50% to 71% throughout the year. This growth solidifies Tether’s position as the largest and most valuable company in the crypto industry.
With over 95 billion stablecoins in circulation, Tether’s supply surpasses the GDP of countries like Guatemala and Bulgaria. In comparison, its main competitor, Circle’s USD Coin (USDC), has only 27 billion tokens in circulation, even after starting the year with over 48 billion. Tether’s dominance in the stablecoin market remains unrivaled.
Tether recently underwent a leadership transition, with Paolo Ardoino taking over as CTO in December. Ardoino has been proactive in building relationships with law enforcement and regulators. This has included freezing USDT held in wallets sanctioned by the U.S. Office of Foreign Asset Controls (OFAC) and collaborating with law enforcement agencies. These efforts demonstrate Tether’s commitment to compliance and regulatory cooperation.
In summary, Tether’s market share growth in 2023 has solidified its position as the leading stablecoin issuer, capturing two-thirds of the total stablecoin supply. Additionally, the company’s efforts to collaborate with law enforcement and regulators indicate its commitment to operating within the regulatory framework.