Diginex’s EQUOS, a leading cryptocurrency exchange, has announced that it will be expanding its stablecoin offering and listing Tether. Despite the controversy Tether has been faced with over the last year, the popularity of USDT continues to grow.
Diginex was the first NASDAQ listed company to issue a digital token with USDC as their first stablecoin listing following a successful capital raise of more than $20 million in Q3 last year.
The latest stablecoin listing highlights the level of demand for stablecoins, by traders and institutions alike. Stablecoins are experiencing huge growth, with studies indicating they have reached an all time high in terms of their total market cap. Tether’s USDT is currently the leader in terms of TMC, followed by USDC, and Binance Dollar, totalling over $54 billion in market cap between the three.
Kelvin Ting, Head of Blockchain Strategy at Diginex commented on the addition of Tether to the exchange:
- “Tether was always going to be an interesting debate at listing committee. Due to Tether’s position as the first stablecoin in the market, it is traded by both retail and institutional clients as a base currency and allows us to expand our client base to these traders. We decided to proceed on the balance of all considerations including the recent progress it has made towards financial transparency.”
Tether has faced a substantial amount of controversy as it previously had landed itself a class action lawsuit based on the alleged minting of unbacked USDT as a means of manipulating the price of Bitcoin. This year, however, an independent auditor certified that the stablecoin is fully backed by US dollar reserves, which reconfirmed the position that the USDT token is fully backed by Tether’s reserves.
Richard Byworth, CEO of Diginex, further commented on the addition of Tether as a “logical progression”:
- “Our strategy is to provide our clients with greater choice and increased capital efficiency. The addition of Tether to the suite of dollar products was a logical progression in that goal. A lot of the criticism of Tether was poorly researched and designed to bring a negative slur to the industry. We are proud to support Tether, an early innovator in the development of the cryptocurrency industry.”
The increase in dominance of stablecoins across industries indicates the preference of a relatively risk-free currency, that shelters the holder from the volatility of other cryptocurrencies, while still enabling them to buy, hold, and trade cryptocurrencies such as Bitcoin at a moments notice.