JPMorgan (JPM) said in a research note on Thursday that the growing dominance of stablecoin Tether (USDT) is detrimental to the broader cryptocurrency ecosystem.
“We believe the increased concentration on Tether over the past year is negative for the stablecoin world and the broader crypto ecosystem,” the bank said.
stable coin Analysts led by Nikolaos Panigirtzoglou said Tether faces regulatory risks across multiple jurisdictions and that “Given the lack of regulatory compliance and transparency, Tether is largely at risk.” states.
However, the bank said there are opportunities for other stablecoins as issuers that are more compliant with existing regulations could benefit from the resulting crackdown and take market share.
USD Coin (USDC) is sell stocks to the public U.S. companies may also be among such beneficiaries, “as they look to expand across jurisdictions and appear to be actively preparing for future stablecoin regulations,” the report said. states.
JPMorgan notes that Tether has recently seen significant growth in both market capitalization and market share, and is widely adopted by centralized crypto exchanges and crypto exchanges. decentralized finance (DeFi) platform. Last week, stablecoin issuers reported that: Record profit of $2.85 billion He also said that the market capitalization of its flagship token has reached almost $100 billion.
Stablecoins are alsoTurbulence” The same is true for peers such as USDC and Binance's BUSD, according to the report.
“While Tether's market dominance may be bad for our competitors, including the banking industry, who want similar success, it has never been bad for the markets that need us most,” Tether's top management said. CEO Paolo Ardoino said in an email following this article. has been published. “In fact, Tether showed greater resilience than several large US banks during last year’s black swan event…It seems hypocritical to talk about the growing concentration of the world’s largest banks.”
read more: Tether reports $2.85 billion profit as largest stablecoin approaches $100 billion market cap
Updated (February 6, 08:49 UTC): Add response from tether
