Tether’s 2022 Settlement Volume Flips Visa and Mastercard

Usdt processed $18.2 trillion in transactions in 2022, ahead of traditional payment processors like Visa and Masterard, according to a tweet on January 14.

By comparison, MasterCard and Visa handled transactions valued at $14.1 trillion and $7.7 trillion, respectively.

The large volume of Tether transactions reflects the massive growth of stabilizers in recent years. In spite of the challenges facing the cryptography industry, stablecoins seems to have prospered. Stablecoinadoption grew in countries where the current economic situation has placed their national fiat currency at a disadvantage.

Tether went through a tough 2022.

Despite the increasing adoption of stablesoins in 2022, Tether has had a rather challenging year.

Over the past year, tether has seen more concerns raised about her reserves and solvency as a result of the ust collapse in May and the crypto ftx swap in November.

The stability has briefly lost its anchorage to the American dollar at the height of the collapse of terra fud. During this period, the stablecoin issuer honored over $10 billion in redemptions. BeinCrypto later reported that several traditional financial institutions took short positions against USDT because of the speculations surrounding its financial health.

Decrease in stock market capitalization of USDT.

While the USDT continues to be the dominant stabilizer in the crypto market, rivals such as the USDC and BUSD registered victories against it in 2022. To put this in perspective, the market capitalization of home cable has increased from a high of $83.13 billion to as low as $65.31 billion over the period. In contrast, the USDC market capitalization reached $56 billion and then decreased.

During this period, centralized crypto exchanges like COINBASE its users to convert their USDT holdings into USDC. More recently, CRYPTO.COM delisted USDT for its Canadian users, citing regulatory compliance measures.

Data from glassnode showed that usdc's transfer volumes surpassed usdt's nearly five times in late 2022. The uptake of the USDC has increased because investors see it as a more secure option than the USDT.

USDC's assets are guaranteed by short-term U.S. cash or treasury bills, and are audited by the global accounting firm Grant Thornton. In addition, tether was not very open with her reservations or audits.

As a result of these issues, some members of the crypto community are challenging Tether's transaction volume data for 2022. Some have assigned the indicators to washing operations, while others have asked the issuer to publish its reservations.