Cryptoverse: Tether tightens grip on wobbling world of stablecoins

economictimes.indiatimes.com:

Seismic shifts may be afoot in the $137 billion market after New York-based Paxos Trust Company, which mints Binance's stablecoin, said it would cease issuing new BUSD tokens after U.S. regulators labeled the asset an unregistered security. The U.S. move has left investors questioning the future shape of the market for stablecoins, tokens that are usually backed by traditional assets like dollars and U.S. Treasuries to tame the wild swings that characterize cryptocurrencies. The immediate impact hasn't been negative for the stablecoin market as a whole, though; it's actually seen its total value grow by $2 billion since the Paxos announcement on Feb. 13.

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«There's way too much demand for dollar-based stablecoins for them to go away,» said Alex Miller, CEO at bitcoin developer network Hiro. Instead rivals are vying to cash in on the woes of BUSD, the world's third-biggest stablecoin, whose market value has shrunk to $12.9 billion from $16.1 billion, with its market share narrowing to 9.4% from 12.1%, according to CoinGecko.com.Market leader tether (USDT) has been a big beneficiary, adding $1.9 billion to its market capitalization to hit $70.3 billion since the news. It now commands 52.6% of the stablecoin market, up from just over 51%. Circle's USD Coin, the second-biggest stablecoin, edged up over $700 million to $42 billion, lifting its market share to 31.3% from 30.9%. AND THE WINNER IS… TETHER