Tether Smashes $160B USDT Milestone – But Shadow Banking Risks Could Trigger a Cryptoquake
Tether just minted its way into history—but the stablecoin giant’s wild growth comes with hidden tripwires.
The 800-pound gorilla in the room
With $160 billion now sloshing through its system, USDT has become the de facto central bank of crypto. Problem is, nobody’s running stress tests on this shadow financial system.
Regulators sharpen their knives
While TradFi bankers clutch their pearls over ‘unbacked’ stablecoins, Tether’s army of traders couldn’t care less—until the next ‘algorithmic stablecoin’ domino falls.
The ticking time bomb
Every USDT token claims a dollar backing. But when 70% of crypto trades flow through this single point of failure, even Wall Street’s too-big-to-fail playbook looks reckless.
Memo to crypto degens: When your stablecoin’s transparency report reads like a BlackRock prospectus, maybe—just maybe—it’s time to hedge your bets.
Tether’s USDT Milestone
Tether, the world’s largest stablecoin issuer, has been minting a lot of USDT tokens recently. As rumors of an IPO keep circulating, the firm has signaled big plans for the future by redirecting resources.
Today, this minting spree has reached an unprecedented level, as 160 billion USDT tokens are currently in circulation:
160B USDt
A new mind-blowing milestone, a statement of the unrivaled utility of USDt as the digital dollar for billions of people living in emerging markets and developing countries.
Thanks for your support
Tether finished this round of USDT creation by minting 2 billion additional tokens earlier today. With strong institutional partnerships and potential assistance from the US government, it seems like Tether’s heading towards a bright future.
Why, then, are several experts warning of a potential crash?
For one thing, impending stablecoin regulation could cause some significant problems. The GENIUS Act is up for a vote today, and seems rather likely to succeed.
As written, it could ban USDT and Tether products from usage in the US. Tether survived an EU ban caused by MiCA regulations, but the US market might be irreplaceable.
Essentially, the GENIUS Act will require Tether to undergo a third-party audit for its USDT reserves, but this has never happened.
The firm made a big show of its $8 billion Gold stockpile, and owns around $100 billion in Treasury bonds. Nonetheless, it issues $160 billion worth of USDT, and there’s no guarantee that the firm holds this much capital.
Furthermore, the Bitcoin market is showing an underlying risk, as many corporate BTC holders are severely overleveraged, and a forced liquidation could lead to a cascade of failing companies.
So, any potential challenge to USDT could damage the Web3 economy, even if it’s for the short term.
However, nothing is guaranteed, and it’s highly likely that Tether WOULD find a way to continue issuing USDT in the US. In any case, Circle still holds dominance in the region with its USDC stablecoin.
Overall, depending on a few upcoming developments, it could signal a dangerous and inflationary economic situation.
