Tether’s USDT Hits Milestone Amid Surge In Stablecoin Adoption

Tether reports that, as of the fourth quarter of 2024, more than 109 million on-chain wallets are holding USDT. This marks a notable milestone in the adoption of Tether’s stablecoin, placing it among the most widely held digital assets globally. This figure represents a significant increase in both individual and institutional adoption, with USDT continuing to play a pivotal role in the crypto ecosystem. The growth of Tether aligns with the increasing demand for stablecoins, driven by their utility in providing a reliable store of value.

Tether USDT Sees Record Growth: 109 Million Wallets and 71% Increase in 2024

According to a recent report by Tether, the number of on-chain wallets holding USDT reached 109 million by the start of Q4 2024, a major leap from previous years. This is more than double the number of wallets holding Bitcoin and almost as many as those holding Ethereum. As a result, USDT has become one of the most popular digital assets.

The growth and adoption has been particularly notable, with the number of wallets holding more than one cent of USDT increasing by 71% in just one year.

The surge in USDT adoption is due to its increasing use, including cross-border payments, savings, and trading. Tether’s presence across multiple blockchain platforms also plays a key role in its widespread usage. 

More so, over 54 million wallets held more than a cent of USDT, reinforcing its position as the leading stablecoin. The number of wallets holding USDT has grown four times faster than all other stablecoins combined.

More so, the US Treasury highlighted the rapid growth of stablecoins in its recent report, noting their increasing role in the digital asset market. The report highlighted that a significant portion of fiat-backed stablecoins’ collateral is invested in Treasury bills and treasury-backed repo transactions. It estimated that around $120 billion in stablecoin collateral is currently tied to U.S. Treasuries.

Growing Adoption Across Emerging Markets

One of the key drivers behind Tether’s adoption is its widespread use in emerging markets, where many users rely on stablecoins for financial inclusion. The report shows that nearly 46% of all web visits to centralized exchanges in the first three quarters of 2024 originated from emerging markets. This highlights the growing role of these regions in the global digital asset ecosystem.

In these regions, USDT is often used for remittances, online payments, and as a hedge against local currency volatility. The stablecoin issuer’s ability to provide a low-cost alternative to traditional financial services has made it attractive to users.

The large number of USDT wallets with low balances is another indicator of the stablecoin’s widespread accessibility. In many cases, wallets holding less than $1 of USDT belong to users in developing regions. These small balances are often used for everyday transactions.

As of November 2024, the number of USDT wallets exceeds that of all other stablecoins combined.  The stablecoin issuer also holds 97.5% of the total stablecoin supply across 25 blockchains.

Despite the popularity of competing stablecoins such as USDC and DAI, Tether continues to maintain its lead. Most recently, the stablecoin issuer’s investment division facilitated its first $45 million crude oil transaction in the Middle East, marking a significant expansion into global trade finance. The deal, involving 670,000 barrels of crude oil, used USDT to streamline payments and enhance trade flow efficiency.

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