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Can Big Banks Dominate the Stablecoin Market and Kill Tether (USDT)?

Press Releases Crypto News BeInCrypto Can Big Banks Dominate the Stablecoin Market and Kill Tether (USDT)?

A significant shift is underway in the cryptocurrency market. Indeed, the potential dominance of big banks in the stablecoin market could threaten firms like Tether.

This trend heralds a new era where traditional financial institutions could reshape the industry, given the spike in regulatory scrutiny seen in 2023.

Tether’s Dominance Threaten by Big Banks

Tether has been a pivotal player in the cryptocurrency market. As a stablecoin, it bridges the traditional fiat currency and the volatile crypto market. Tether’s USDT, pegged to the US dollar, offers the security and stability many traders and investors seek. Its utility in facilitating trade and hedging against volatility has led to its widespread adoption.

However, the landscape is changing rapidly. Big banks, previously wary of the crypto market, are now recognizing the potential of stablecoins. These financial behemoths have the infrastructure, regulatory compliance frameworks, and, most importantly, the trust of the masses, which they have cultivated over decades.

Their entry into the stablecoin market is about expanding their services and maintaining control over the financial system, which could put stablecoin giants like Tether out of business.

“At some point, Janet Yellen is going to say to Jamie [Dimon], and all the other muppets who run these TradFi banks, you are allowed to do a Tether, and they’re going be like great we’re just going to offer a JPMorgan Coin… There’s not going to be none of these trust issues. And overnight Tether has no more business,” Arthur Hayes, Chief Investment Officer of Maelstrom, explained.

Therefore, regulatory compliance is a significant edge that big banks ho

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Author: Bary Rahma

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