USDT market cap exceeds 80 billion US dollars, citing risk diversification as the key factor in its success.

The market capitalization of stablecoin issuer Tether continues to increase, officially surpassing 80 billion US dollars, accounting for over 60% of the total market value. Paolo Ardoino, the CTO of Tether, tweeted that Tether made a profit of 700 million US dollars in the fourth quarter of last year, and the future outlook remains positive. In response to a recent report by Bloomberg, Tether also refuted in its press release, stating that Tether has not had any dealings with Silvergate, Silicon Valley Bank, and Signature Bank. The implications in the Bloomberg article suggesting that doing business with offshore stablecoin suppliers is not illegal are also irresponsible reporting.

Diversification of Jurisdictional Risks is a Winning Factor

The article mentions that following bank failures in the United States and Europe, Bitcoin is ready to do what it has always aimed to do - protect people's wealth from the impacts of financial system failures. However, other stablecoins also face significant challenges as their reserves are concentrated in collapsing U.S. banks. While concentrated reserves may aid growth, they also come with inevitable jurisdictional risks.

Tether emphasizes that for stablecoins to gain widespread use in DeFi, they must not introduce centralization risks. The smart reserve composition provided by Tether mainly holds treasury bonds unaffected by bank bankruptcies and mitigates jurisdictional risks through partnerships with various international banks.

In contrast to the declining market value of competitor Circle, Tether's market value surged by $6 billion following the collapse of a Silicon Valley bank. The implication seems to suggest Tether's pride in not having dealings with U.S. domestic banks.