Tether Hits $150B as Cross-Border Crypto Payments Reach $600B

Tether has reached a new milestone with its USDt stablecoin surpassing a $150 billion market capitalization, coinciding with new findings from the Bank for International Settlements (BIS) showing global cross-border cryptocurrency payments totaled $600 billion in the second quarter of 2024. 

Tether’s USDt Hits $150 Billion Milestone as Stablecoin Demand Accelerates Globally

Tether’s USDt, the world’s largest stablecoin by market capitalization, has officially surpassed the $150 billion mark for the first time, cementing its dominance in the global stablecoin market and reinforcing the accelerating demand for crypto-pegged fiat alternatives.

This historic milestone was reached on May 12, reflecting over 36% year-over-year growth in USDt’s circulating supply. The surge in adoption has been particularly pronounced since November 2024, coinciding with the re-election of Donald Trump as President of the United States, which many in the industry interpret as a bullish signal for the broader cryptocurrency ecosystem.

USDt’s market cap growth over the past year (Source: CoinMarketCap)

At its current market capitalization, Tether accounts for 61% of the total global stablecoin market, according to CoinMarketCap data. The next closest competitor, Circle’s USDC, holds nearly 25% market share. Combined, the two account for the lion’s share of the rapidly expanding digital dollar economy that is underpinning much of today’s crypto trading volume.

As the leading stablecoin, USDt plays a crucial role in providing liquidity across exchanges and DeFi platforms, often acting as the base trading pair for countless cryptocurrencies. Its growing dominance is seen by analysts as a key indicator of broader market engagement and institutional inflows into digital assets.

Tether’s growth is also occurring against a backdrop of rising demand for digital cash. According to recent figures from Dune and Artemis, the number of active stablecoin wallets has jumped from 19.6 million to 30 million over the past year—an increase of more than 50%.

Fueling the Next Crypto Cycle?

Industry insiders, such as CoinFund managing partner David Pakman, argue that a $1 trillion total stablecoin supply could serve as a foundational catalyst for the next major crypto rally. Stablecoins like USDt offer the essential infrastructure for traders and institutions alike, providing price stability, low transaction friction, and access to decentralized markets.

Despite its global footprint, Tether has remained relatively absent from the United States due to regulatory constraints. That could soon change. Tether CEO Paolo Ardoino reportedly revealed that the company is planning to launch a new US-focused dollar-backed stablecoin aimed specifically at the domestic market.

Speaking at the Token2049 conference in Dubai, Ardoino emphasized that the US version of the stablecoin would be distinct from the existing international USDt product. This move comes as US lawmakers increasingly signal support for comprehensive crypto legislation, potentially opening the door to regulated stablecoin issuers.

CNBC reports that Tether is ramping up its lobbying efforts in Washington, D.C., as Congress deliberates over several competing proposals, including the highly scrutinized STABLE Act. The bill, introduced by House Financial Services Committee Chair French Hill and Digital Assets Subcommittee Chair Bryan Steil, seeks to establish a regulatory framework for stablecoin issuers.

Pushback Against the STABLE Act

However, the STABLE Act has faced stiff criticism from within the crypto policy community. Former Commodity Futures Trading Commission (CFTC) Chair Timothy Massad expressed concerns during a February hearing of the House Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence.

Former CFTC Chair Timothy Massad delivers remarks at a House committee meeting (Source: GOP Financial Services)

Massad warned that the bill “poses far too much risk of weak state standards” and criticized its “inadequate review process.” He emphasized the lack of ongoing federal oversight as a major flaw, suggesting the act fails to provide the regulatory clarity and robustness needed for a rapidly growing sector like stablecoins.

Tether’s potential re-entry into the US market would mark a significant shift in the stablecoin landscape, particularly if it successfully navigates the evolving legislative environment.

Tether’s $150 billion milestone is more than just a number—it’s a testament to the increasing mainstream acceptance of stablecoins and the evolving role they play in global finance. With nearly two-thirds of the stablecoin market under its control and expansion plans in motion, Tether is poised to remain a central force in the crypto economy.

As regulatory clarity emerges and adoption accelerates, USDt’s trajectory could signal not only the future of stablecoins but also the broader integration of decentralized finance into everyday economic activity.

BIS: $600B in Cross-Border Crypto Payments Driven Largely by Speculation, But Remittances Also Fuel Growth

In related news, a new report from the Bank for International Settlements (BIS) has revealed that global cross-border cryptocurrency payments reached a staggering $600 billion in Q2 2024, underscoring the rapidly evolving role of digital assets in international finance. 

The report, published on May 8, attributes the bulk of these flows to speculative investment motives, yet also highlights growing utility in remittances, especially in countries facing inflation or high transfer costs.

$600 Billion in Crypto Cross-Border Transactions

The BIS study focused on flows involving the world’s four largest crypto assets by utility in payments: Bitcoin (BTC), Ether (ETH), Tether (USDT), and USD Coin (USDC). According to the data, these four tokens collectively facilitated over $600 billion in cross-border transactions during the final quarter observed in the study, Q2 2024.

Cross-border crypto asset flows by quarter (Source: BIS)

“Our findings highlight speculative motives and global funding conditions as key drivers of native crypto asset flows,” the BIS stated. These motives are closely tied to risk-on sentiment in major financial markets and a growing alignment between digital asset behavior and traditional capital markets.

The report added that while large-volume transfers are generally investment-driven, “low-value transactions in Bitcoin and stablecoins often point to real-world use cases,” particularly in the remittance sector.

The BIS researchers drew clear links between macroeconomic shifts and digital asset movements. Tighter global funding conditions—such as rising interest rates or liquidity squeezes—have historically constrained investor appetite for risky assets, and the report found that cryptocurrencies are now moving in tandem with these broader financial trends.

“This indicates increasing interconnectedness between cryptoassets as speculative assets and mainstream finance,” the BIS emphasized, noting how traditional market shocks increasingly ripple into the crypto economy.

Crypto-specific risks—such as platform hacks, regulatory crackdowns, and token volatility—also significantly shape cross-border crypto flows, amplifying their speculative nature. The BIS has previously warned that the growing entanglement between DeFi, centralized finance, and retail investors could create new vulnerabilities within the global financial system.

Stablecoins and Bitcoin Support Real-World Transfers

Despite the dominance of speculative capital, the BIS report draws attention to a parallel trend: the growing use of stablecoins and Bitcoin in everyday cross-border payments. According to the BIS, high remittance costs imposed by legacy financial institutions are driving users—particularly in developing nations—to adopt cryptocurrencies as an alternative.

“Higher opportunity costs of fiat currency usage, such as high inflation, spur bilateral cross-border transactions in both unbacked cryptoassets and stablecoins,” the BIS noted. The report highlights how inflationary pressures in sender or receiver countries often correspond with spikes in crypto transaction volumes.

Moreover, crypto enables faster and cheaper money movement, especially in corridors plagued by limited banking infrastructure. This makes Bitcoin and stablecoins like USDT increasingly popular in peer-to-peer remittance markets and informal economies.

The study also provided a breakdown of major players in cross-border crypto activity. The United States and the United Kingdom collectively accounted for around 20% of the global cross-border payments made with Bitcoin and USDC. For Ether-based payments, the figure was even higher—close to 30%.

Meanwhile, in the stablecoin space, Russia and Turkey emerged as significant players. Together, they accounted for over 12% of cross-border transactions conducted using Tether (USDT), the most widely used stablecoin globally.

These regional insights suggest that while Western countries dominate speculative flows, emerging markets increasingly rely on cryptocurrencies for functional purposes like value preservation and remittances.

BIS Raises Caution on Crypto’s Growing Impact

The report’s release follows a broader warning from the BIS in April 2025, where it cautioned that cryptocurrency and decentralized finance (DeFi) had “reached a critical mass” in both capital and participants. BIS officials said the expansion poses potential threats to financial stability, especially if unregulated growth continues in jurisdictions with weak oversight.

While crypto proponents argue that digital assets democratize access to financial tools, the BIS continues to stress the risks of unchecked speculation and uneven regulatory frameworks.