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Tether’s USDT Stablecoin Growth Amidst The UN’s Illegal Activity Claims and Regulatory Cooperation

Tether, the company behind USDT stablecoin, has seen significant growth in 2023, with its global stablecoin supply share increasing from 50% to 71%. Currently, Tether has over 95 billion stablecoins in circulation, surpassing major economies like Guatemala and Bulgaria, dwarfing its closest stablecoin rival, Circle's USD Coin, which has 27 billion. Tether's growth comes amidst leadership changes and increased engagement with regulators. Despite this success, Tether has faced allegations of illicit activity involvement highlighted in a United Nations report, which claims USDT, particularly on the Tron blockchain, is used for money laundering in East and Southeast Asia.

In response, Tether refutes these claims, emphasizing its cooperation with law enforcement and the blockchain traceability of USDT, arguing that the UN report overlooks its efforts in combating financial crime. Tether highlighted its efforts to reportedly freeze over $300 million in USDT tied to illegal activities, including $225 million related to a human trafficking syndicate. The company advocates for recognizing stablecoins' role in aiding developing economies and calls for global cooperation to utilize blockchain technology against financial crimes.

🌐👉 To see how Tether is urging collaboration with the global community and the UN to leverage blockchain technology against financial crimes, check out the full article [HERE].

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Near, Klaytn, Arbitrum Spark the 2023 Surge of NFTs, DeFi, and Social DApps

There was a massive jump in blockchain activity in 2023, according to a new report by DappRadar. The number of individual accounts, called Unique Active Wallets, using Web3 apps saw a spike of 124% last year. This UAW data report highlights the rising interest in decentralized applications, or DApps, with an average of 4.2 million UAWs interacting daily. Nonfungible Tokens (NFTs) led this growth with a 166% increase, followed by Decentralized Finance (DeFi) at 112%. Social media apps, like Friend.tech, Lens Protocol, and Galxe, also grew by 29%.

The networks Near, Klaytn, and Arbitrum saw the most significant growth, with Near increasing by 1,902%, Klaytn by 1,099%, and Arbitrum by 624% compared to the year before. These networks hosted popular DApps like Kai-Ching, SuperWalk, and Uniswap v3. In contrast, Harmony, Solana, and Hive saw significant declines due to various challenges, like security breaches and financial issues. Hive network, Arbitrum's UAWs, and Ethereum collected substantial fees due to increased transactions thanks to the surge in blockchain activity with the social media app Stars Arena and the Web3 game Splinterlands.

🌐👉 For a comprehensive overview of the 2023 blockchain landscape from gaming to trading, [HERE].

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GameStop Shuts Down NFT Marketplace Amid Regulatory Challenges of Crypto

GameStop has announced the closure of its NFT marketplace due to regulatory uncertainties in the crypto space. Users have just over two weeks left to access the platform, after which they can no longer buy, sell, or create NFTs on GameStop's platform. However, their NFTs will remain accessible on the blockchain and can be traded on other NFT platforms, like OpenSea. This decision follows a series of reductions in GameStop's crypto offerings, including discontinuing access to iOS and Chrome Extension wallets and moving away from a crypto focus after a significant net loss and layoffs in its digital assets department.

GameStop's CEO expressed optimism about digital assets in gaming but prioritized avoiding risks with investor funds. The NFT marketplace had a slow start and faced challenges, including controversial NFTs and regulatory issues, leading to its eventual shutdown.

🌐👉 For more details on GameStops decision to end crypto gaming and the discontinuing of their NFT Marketplace, read more [HERE].

• Apple Store Removes Binance and Other Global Exchanges’ Apps in India Amid Wider Crackdown

• Coinbase partners with Yellow Card to expand USDC access in Africa

• Record World ID interest in Argentina leads to New innovation and 500k Verifications

• Singapore’s New Bill Set to Tighten Crypto Financial Regulations

• Venezuela’s Unlucky Petro Coin to Shut Down Jan 15th After 6 Years

The Editor's Insights

A few articles this week deserve an honorable mention; here are my comments on them.

Could Circle’s USDC Stablecoin Be the Next Big Fiat Currency?

I'm fascinated by a Government’s ‘innovation’ of its currency despite the many forces trying to degrade it. I put -innovation- in quotes because -manipulation- seems too harsh of a word. Especially since, in the case of the USDC stablecoin issued by Circle, this is more like innovation vs. control. I suppose one would have to decide. In 2023, the number of wallets holding at least $10 in USDC grew by 59%, reaching over 2.7 million. This happened despite its circulating supply dropping from $45 billion to $25 billion, a 44% decrease mainly due to market shifts and regulatory pressures. This growth suggests increased user adoption even amid a shrinking market cap. Circle's CEO, Jeremy Allaire, remains optimistic about the U.S. passing stablecoin legislation soon, anticipating it would strengthen U.S. leadership in digital currencies. Key bills, such as the Clarity for Payment Stablecoins Act and the Stablecoin Transparency Act, are under consideration in Congress. Circle itself has been actively lobbying for stablecoin regulation.

In early 2024, Circle filed for an initial public offering and partnered with Yellow Card to expand USDC's reach in Africa. They are also integrating their technology with Chainlink's Cross-Chain Interoperability Protocol to enable easier cross-chain transfers of USDC, highlighting their commitment to developing the USDC ecosystem. Remittances, particularly in Asia, have become a significant use case for USDC. In 2022, $130 billion worth of USDC flowed into Asia, with the Asia-Pacific region accounting for 29% of all global digital currency receipts. This growth is especially notable in emerging markets with large diasporas, like the Philippines. USDC is also helping to address the trade finance gap in these regions, supporting cross-border transactions and financial inclusion. Despite the challenges, USDC is seeing growth in worldwide adoption, and the company (or entities behind it) is expanding its role in global financial transactions, particularly in remittances and cross-border payments.