BUSD

Bank AI

when

Coin

The post <a href="https://coinpedia.org/news/jpmorgan-warns-tethers-surge-threatens-crypto-markets-releases-special-report/">Crypto Markets Could Be Under Threat as Tether Booms to $100B, Warns JPMorgan&nbsp;</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
In just 90 days, <a href="https://coinpedia.org/news/inside-tethers-strategy-6-2-billion-in-annual-profits/">Tether (USDT)</a>, the top stablecoin, has outpaced financial giants, boasting an impressive annual run rate of $11.4 billion. This success has led to nearly $100 billion in circulation, surpassing Goldman Sachs’ profits in the last quarter, as reported by Matt Hogan, <a href="https://coinpedia.org/crypto-live-news/bitwise-commits-to-donating-10-of-bitcoin-etf-profits/">Bitwise</a> CIO. 
However, JPMorgan expresses concern over Tether’s dominance, citing regulatory and transparency issues. 
<h2 class="wp-block-heading" id="h-100-billion-and-growing">$100 Billion and Growing!</h2> 
JPMorgan analysts, led by Nikolaos Panigirtzoglou, see Tether’s growing dominance over the past year as a potential risk for stablecoins and the broader crypto market. The transparency around Tether’s regulatory challenges is seen as a drawback for long-term investors. 
Tether’s CEO, Paolo Ardoino, defends the stablecoin, suggesting that its dominance may unsettle competitors, including banks. He highlights the positive impact on markets reliant on Tether, emphasizing the allocation of 15% of operating profits to <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/">Bitcoin</a> purchases. 
Unique Approach and Strong Finances 
Supporting Tether, <a href="https://coinpedia.org/news/inside-tethers-strategy-6-2-billion-in-annual-profits/">Pompliano</a> notes its unique approach, holding reserves in diverse investments for availability and protection. Tether’s financial strength, with $5.4 billion in excess equity and a profit per employee exceeding $100 million, positions it as a lucrative global business. 
<h2 class="wp-block-heading" id="h-tether-vs-stablecoins">Tether vs Stablecoins</h2> 
Contrary to concerns, the report suggests other stablecoins could thrive, particularly those following existing rules. USD Coin (USDC), seeking a public share sale in the U.S., could benefit from Tether’s regulatory challenges by actively preparing for stablecoin regulations. 
Despite skepticism, Tether’s market value and share have grown significantly. Widely used by crypto exchanges and DeFi platforms, Tether made a record-breaking $2.85 billion profit in the last quarter, showcasing its resilience compared to USD Coin and Binance’s BUSD. 
Read More: <a href="https://coinpedia.org/research-report/stablecoin-market-report-in-depth-analysis-and-insights/">Stablecoin Market Report 2024: In-Depth Analysis and Insights</a> 
Nearing a milestone 
As Tether approaches a $100 billion market cap, questions arise about regulatory oversight and potential effects on other stablecoins.

Crypto Markets Could Be Under Threat as Tether Booms to $100B, Warns JPMorgan

Table of Contents

CoinPedia News

Other articles published on Feb 5, 2024

Wall Street Journal: Bitcoin halving may push prices up to $240,000

All these factors stand to affect Bitcoin prices this week

TIA Coin Price Surge Attracts Attention

Bitcoin surges above $43,000 as market anticipates U.S. Fed rate cut in May

SEC wins motion to disclose Ripple financial statements, XRP sales details

What Is Sei (SEI) Network?

Join our free newsletter for daily crypto updates!