Tether Quashes Blockchain Rumors, Focuses on Network Integrations
Tether, the issuer of the worlds dominant stablecoin, has dismissed rumors of launching its native blockchain. CEO Paolo Ardoino clarified that the firm intends to continue its strategy of integrating USDT onto various networks to support decentralized use cases.
The top exec also stated that this approach aligns with Tethers motto, Unstoppable TogETHER, emphasizing collaboration with other projects instead of building a centralized solution. Market observers believe that the decision to avoid launching a proprietary blockchain is likely influenced by the companys desire to maintain a neutral stance and avoid regulatory scrutiny.
USDT, currently valued at over $118 billion, holds a significant market share of around 75% in the stablecoin market. Its integration with various networks, including the recent launch of The Open Network (TON), has further cemented its position as a crucial bridge between traditional finance and the crypto ecosystem.
However, Tethers rising popularity and rapid growth have also invited regulatory attention. The company has faced investigations related to money laundering and sanctions violations, raising concerns about its transparency and reserve backing. These issues have led to market volatility, as seen in the brief dip below the dollar peg when news of the investigations surfaced.
Tether Profited $2.5B In Q3
Amidst these developments, the firm released its Q3 2024 assurance opinion conducted by BDO. The report highlighted Tethers financial robustness, showcasing all-time high (ATH) figures in net profit, group equity, and total assets.
It amassed a net profit of $2.5 billion for the quarter, taking the consolidated profit for nine months to US$7.7 billion and further lifting the Group Equity to US$14.2 billion. These figures underpin the companys stablecoin market dominance, signaling strategic reinvestments with an emphasis on financial transparency.
While the demand for a more transparent and decentralized stablecoin ecosystem grows, Tether remains committed to its current strategy. As the crypto industry continues to evolve, it will be interesting to see how Tether adapts to changing market dynamics and regulatory pressures.
Read more: https://www.tronweekly.com/tether-quashes-blockchain-rumors/
Text source: TronWeekly
