The third biggest cryptocurrency Tether, which earlier this month hit the $80-billion market cap, is now among the top 30 names in the financial services world. With the current m-cap of $80.75 billion, stablecoin Tether (USDT) has turned more valuable than the 29th-ranked US-based financial services group PNC Financial Services valued at $80.74 billion, as per data by CompaniesMarketCap.com that ranks top global assets by m-cap.
In the list of 593 financial services players in the world, Tether had a higher m-cap than other notable financial entities such as SoftBank ($72.46 billion), BNP Paribas ($70.29 billion), ICICI Bank ($65.92 billion), Moody’s ($61.34 billion), London Stock Exchange ($57.84 billion), and others. The list was topped by Bitcoin with an m-cap of $792.20 billion and Ethereum with an m-cap of $350.34 billion placed after JPMorgan Chase at the second spot.
While digital currencies cannot be compared to physical businesses because cryptos are a peer-to-peer software system and enterprises are for-profit businesses, Tether theoretically was the 28th biggest financial services player globally by market cap, data showed.
“Launched in 2014, Tether tokens pioneered the stablecoin model and are the most widely traded. Tether tokens offer the stability and simplicity of fiat currencies coupled with the innovative nature of blockchain technology, representing a perfect combination of both worlds,” according to the Tether website. Stablecoins are essentially digital currencies with a stable value as their prices are pegged to a reserve asset such as gold or the US dollar that helps it in controlling the volatility that is present in other coins such as Bitcoin whose price is not tied to any ‘stable’ reserve asset. Tether has a stable price of $1.
Stablecoins are being increasingly used as an inflation hedge in recent times and compared to keeping fiat currency in a savings account averaging 0.06 per cent, users can lend their stablecoins and earn yields ranging from 3 per cent to as high as 20 per cent, according to CoinMarketCap.com. Moreover, since USDT is protected from market fluctuations, it is a safe haven for crypto investors as during periods of high volatility, they can park their portfolios in Tether without having to completely cash out into USD, the website read. Tether’s m-cap had jumped over 17X from $4.65 billion in March 2020 to the current level with a circulating supply of 80.74 billion coins.