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 say Tether faces regulatory risks across multiple jurisdictions and that “Given the lack of regulatory compliance and transparency, Tether is largely at risk.” Says.
However, the bank said there are opportunities for other stablecoins as issuers that adhere more closely to 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 been widely adopted by centralized crypto exchanges and crypto exchanges, and has experienced significant growth in both market capitalization and market share. 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 CEO said. (CEO) Paolo Ardoino said in an email following this article. Published. “In fact, Tether showed greater resilience during last year’s black swan event than several large US banks…It seems hypocritical to talk about increased concentration by the world’s largest banks.”
Updated (February 6, 08:49 UTC): Add response from tether
