Stablecoin Tether’s Increasing Dominance Is Bad For Crypto Markets
JPMorgan has criticized the growing dominance of stablecoin tether (USDT) in the crypto ecosystem, citing regulatory risk across multiple jurisdictions.
The bank believes that tether is mostly at risk due to its lack of regulatory compliance and transparency. However, there is an opportunity for other stablecoins, such as USD Coin (USDC), which has filed to sell shares to the public in the U.S. and is proactively preparing for upcoming stablecoin regulations. USDC has seen significant growth in market cap and market share recently, with widespread adoption across centralized crypto exchanges and decentralized finance platforms.
The stablecoin has also benefited from the “turbulence” in peers such as USDC and Binance’s BUSD. The bank believes that the increasing concentration in tether is a negative for the crypto ecosystem.
(With inputs from Shikha Singh)
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