USDT Global Stablecoin Market Domination Throughout 2023, Tether Is Not Safe

Stablecoin USDT Tether. (Photo; Doc. DChained)

JAKARTA - Tether, a major player in the world of stablecoin, not only achieved financial success through its USDT stablecoin, but also faced new challenges. The latest report from Glassnode recorded an increase in Tether's market dominance from 50% to 71% throughout 2023.

However, this success also has consequences. The UN report reveals that Tether's growth has attracted the attention of irresponsible parties, including criminals, money laundering perpetrators, and scammers or fraudsters in Southeast Asia.

On the night of January 12, Tether managed to add 1 billion USDT worth IDR 15.585 trillion to its reserve funds. This prompted USDT's market capitalization to reach an unprecedented figure, which was IDR 1,479 trillion ($95 billion).

Meanwhile, Circle, its closest competitor to managing the USDC stablecoin, recently submitted an initial public offering (IPO) to the US Securities and Exchange Commission (SEC). However, Circle only has 27 billion USDC tokens in circulation, far less than Tether's dominant market position.

Have Bitcoin Worth IDR 46.7 Trillion

Tether was not only successful in stablecoins, but also in Bitcoin investments worth around IDR 46.7 trillion ($3 billion) on January 4, 2024, showing significant diversification of profit sources.

Paolo Ardoino, who previously served as CTO, now leads as CEO, replacing Jean-Louis van der Velde. Ardoino has strengthened ties with US law enforcement agencies, as reflected in a wallet freeze linked to the OFAC sanctions list, seizing more than IDR 6.78 trillion ($435 million) of illegal funds.

Laporan menunjukkan bahwa Tether terlibat dalam peningkatannya kasus kejahatan siber, pencucian uang, dan perbankan di kawasan Asia. Scheme kejahatan melibatkan "sextortion" dan "pig butchering", memantek kepercayaan korban untuk menghasilkan uang.

Tether has teamed up with US law enforcement agencies and regulatory authorities, banning more than 1,260 addresses linked to illegal activity. The amount of USDT in banned wallets has exceeded Rp13,62 trillion ($875 million). With impressive financial achievements, Tether now has to face new challenges that have emerged in line with its increasing popularity.