Tether's $120B Empire Proves Crypto's Utility

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Tether, the company behind the world’s largest stablecoin $USDT, has quietly built a $120 billion stablecoin empire. But what’s even more interesting is how $USDT is being used in the real world, offering valuable lessons about crypto adoption.

Here are three key takeaways:

1. Crypto is More than an Investment Vehicle

We often think of cryptocurrencies as high-risk investment vehicles, with volatile assets like Bitcoin dominating headlines.

However, stablecoins like $USDT are demonstrating that crypto has practical applications far beyond speculative trading.

Unlike most cryptocurrencies, stablecoins are pegged to stable assets, typically fiat currencies like the US dollar.

In countries like Argentina and Turkey, where inflation is rampant, $USDT has become a digital dollar, helping residents preserve their wealth without resorting to black markets.

This allows individuals to avoid the risks associated with local currency depreciation while maintaining easy access to global financial systems.

With over 300 million users globally, Tether has become one of the most significant forces in the digital financial world. It can not only enhance money transfers but is also a lifeline for the unbanked, especially in developing regions where traditional banking services often fail.

As Tether’s CEO Paolo Ardoino clarified in a recent interview with Coindesk, this utility is no accident but a core part of $USDT’s business model.

“We are not trying to sell our stablecoin to bankers or to the financial elite. Our main focus is the last mile—the people in the street, those five billion users.”

But how does Tether target the man on the street? By looking outside the US and positioning $USDT as a fiat currency transport layer.

2. Stablecoins as a Key Transport Layer for Fiat Currencies

Cash is the traditional king of transport layers—it’s physical, simple, and easy to understand. But it’s also hard to transport in large quantities, difficult to secure, and hard to get across international borders.

Within the US, there are several USD transport layers, including PayPal, bank-to-bank transfers, credit cards, debit cards, and Venmo.

However, once you move outside the country, many of these transport layers vanish.

That’s where Tether shines.

Tether facilitates fast, secure, and cost-effective transfers of fiat currencies across borders, especially the US dollar.

Users can send $USDT (or other stablecoins) almost instantly across the globe. Since $USDT is pegged to the US dollar, it acts as a digital proxy for dollars in transit.

In this way, stablecoins like $USDT are effectively modernizing the infrastructure that supports the global flow of money.

3. Tron Tether Form A Template for Crypto Adoption

While $USDT has found worldwide success, its use on the Tron network is particularly noteworthy.

There are at least two reasons for this:

Tron’s transaction fees are low, roughly $0.13 currently, and a fraction of the fees on Ethereum, the second-largest network for $USDT. As Ardoino puts it, $USDT “works much better outside of the US,” where low transaction costs are critical for adoption.

Without the competition from banks and well-established, reliable financial networks, $USDT excels in places that trust USD but need a better way to access it.

And with the Tron network, they can access $USDT with minimal transaction costs.

This is why $USDT dominates transactions on the Tron network, far outstripping TRX, the native Tron token.

Conclusion: $USDT’s $120B Case Study Proves Crypto’s Utility

They’re already becoming vital tools in the global financial system, often outperforming traditional financial services in terms of stability, efficiency, and inclusivity.

Perhaps more importantly, $USDT proves that crypto works outside the hallowed halls of financial institutions.

As the crypto economy grows, we’ll see even more practical applications emerge (like $USDT on the Lightning Network) and cement the role of stablecoins in everyday life.

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