Tether CEO Paolo Ardoino announced that the company’s USDT stablecoin has reached 500 million users, which he characterized as “likely the biggest financial inclusion achievement in history,” representing approximately 6.25% of global population. The company clarified that this figure represents “real people” rather than simply wallet addresses, though the methodology for distinguishing unique individuals from multiple wallets per user or institutional accounts remains unclear. With the World Bank estimating 1.4 billion adults globally lack access to traditional banking services, Tether positions USDT as addressing financial exclusion by enabling anyone with a mobile device to download a cryptocurrency wallet and participate in digital transactions without requiring bank account infrastructure.
The stablecoin’s adoption appears particularly concentrated in regions experiencing currency instability or banking system limitations, with Tether releasing a documentary highlighting USDT usage in Kenya where individuals and small businesses turn to the dollar-pegged token “not for speculation, but for survival.” According to Ardoino, 37% of USDT users hold the stablecoin primarily as a store of value rather than for transactional purposes, reflecting its role as a dollar proxy in high-inflation environments or nations where currency controls and seizure risks create barriers to preserving purchasing power. Kenyan businesses specifically have adopted USDT for import payments as an alternative to the weakening Kenyan shilling, providing operational continuity that would otherwise be disrupted by local currency depreciation.
USDT maintains dominant market position among stablecoins with $182.4 billion market capitalization representing 58.4% market share according to CoinGecko, substantially exceeding Circle’s USDC at $76.8 billion. The scale of adoption has translated into significant corporate valuation, with Tether reportedly in discussions with investors to raise up to $20 billion at approximately $500 billion valuation with Cantor Fitzgerald serving as lead adviser. Such valuation would position Tether among the world’s most valuable private companies, reflecting both the revenue generated from reserves management and the strategic importance of dominant stablecoin infrastructure within the cryptocurrency ecosystem.
The 500 million user milestone underscores stablecoins’ evolution from cryptocurrency trading tools to financial infrastructure serving populations excluded from traditional banking systems or seeking alternatives to unstable local currencies. However, questions persist regarding regulatory oversight of stablecoin issuers, reserve transparency, systemic risk implications of concentrated market power, and whether claimed user figures accurately represent unique individuals or include duplicate accounts and institutional holdings. While Tether’s adoption demonstrates genuine utility in specific use cases—particularly as dollar access mechanism in emerging markets—the lack of comprehensive regulatory frameworks governing stablecoin operations and reserve management continues generating debate about consumer protection, financial stability, and the appropriate role of private dollar-pegged digital currencies within the global financial system.
