Tether has built a $120 billion stablecoin empire using the #1 stablecoin, $USDT. $USDT is the third largest cryptocurrency by market capitalization after $BTC and $ETH. More than half of $USDT transactions take place on the Tron network. $USDT demonstrates the utility of cryptocurrencies beyond being an investment tool.
Tether is targeting $USDT, but that may not be what you think.
As the debate over cryptocurrency use cases rages on (even taking center stage in the U.S. political cycle), stablecoins like $USDT provide a real-world case study in cryptocurrency adoption. .
What lessons have we learned so far?
Let’s take a look.
Lesson 1: Cryptocurrency is more than just an investment vehicle
We have long known that cryptocurrencies are primarily high-risk investment vehicles, with volatile assets like Bitcoin often dominating the headlines.
But stablecoins like $USDT are proving that cryptocurrencies have practical uses far beyond speculative trading.
Unlike most cryptocurrencies, stablecoins are pegged to a stable asset, typically a fiat currency such as the US dollar.
In places like Argentina and Turkey (where inflation is rampant), $USDT has become a digital dollar, allowing residents to preserve their wealth without resorting to the black market.
This allows individuals to avoid the risks associated with local currency depreciation while maintaining easy access to the global financial system.
With over 300 million users worldwide, Tether has become one of the most important forces in the world of digital finance. This not only enhances remittances but also provides a lifeline for the unbanked. This is especially important in developing regions where traditional banking services often fail.
Source: CoinMarketCap
As Tether CEO Paolo Ardoino revealed in a recent interview with Coindesk, that utility is no coincidence, but rather a core part of $USDT’s business model.
We are not trying to sell stablecoins to bankers or financial elites. Our primary focus is on the last mile, the people on the street, our 5 billion users. Paolo Ardoino
But how will Tether target the man on the street? By looking outside the US and positioning $USDT as a fiat transport layer.
Lesson 2: Stablecoins as the primary transport layer for fiat currencies
The transport layer is how you get fiat currency from one place to another.
Of course, cash is the traditional king of the transport layer: physical, simple, and easy to understand. However, it is also difficult to transport, secure, and obtain across borders in large quantities.
Several USD transport layers are used in the United States, including PayPal, bank-to-bank transfers, credit cards, debit cards, and Venmo.
However, many of these transport layers disappear when you move outside the United States.
This is where tethers come into play.
Tether facilitates fast, secure, and cost-effective transfers of fiat currencies, especially US dollars, across borders.
Users can send $USDT (or other stablecoins) almost instantly around the world. Since $USDT is pegged to the US dollar, it acts as a digital proxy for the dollar during transfer.
Stablecoins like $USDT are therefore effectively modernizing the infrastructure that supports global money flows.
Lesson 3: Shaping the Template for Cryptocurrency Adoption with Tron + Tether
$USDT has been successful globally, but primarily on the Tron network.
There are at least two reasons:
Tron’s transaction fees are currently low at around $0.13, a fraction of the fees on Ethereum, the second largest $USDT network. In Ardoino’s words, $USDT “works much better outside of the United States,” so low transaction costs are key to its adoption.
With no competition from banks or established, trusted financial networks, $USDT excels in places that trust USD but need a better way to access it.
The Tron network also allows you to access $USDT with minimal transaction costs.
Source: Oklink
This is why $USDT dominates transactions on the Tron network, far outperforming $TRX, the native Tron token.
Conclusion: $USDT’s $120 billion case study proves the usefulness of cryptocurrencies
Stablecoins like $USDT prove that cryptocurrencies can offer more than just investment (and speculation) opportunities.
They are already becoming essential tools in the global financial system, often outperforming traditional financial services in terms of stability, efficiency and comprehensiveness.
Perhaps more importantly, $USDT proves that cryptocurrencies can function outside the hallowed halls of financial institutions.
As the crypto economy grows, more practical applications (such as $USDT on the Lightning Network) will emerge, strengthening the role of stablecoins in everyday life.
