Cryptocurrencies

Stablecoin Tether’s Market Dominance May Jeopardize Crypto, JPMorgan Says

  • Tether’s USDT token is on the verge of surpassing $100 billion
  • Lack of ‘compliance and transparency’ hurts, JPMorgan says
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Tether Holdings Ltd., the operator of the largest stablecoin, is expanding its commanding market share on the heels of record-breakingBloomberg Terminal profits. That’s a risk for crypto overall, according to JPMorgan Chase & Co.

Tether’s USDT token is on the verge of surpassing $100 billion in circulation for the first time. Stablecoins, a form of crypto token pegged to another asset, use large reserves to support their value. They are integral to the way crypto markets operate, acting as a less volatile alternative for traders looking to swap between digital assets and to store their wealth.