Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
Home»ADOPTION NEWS»JPMorgan says Tether’s growing dominance is negative for the cryptocurrency.
ADOPTION NEWS

JPMorgan says Tether’s growing dominance is negative for the cryptocurrency.

By Crypto FlexsFebruary 3, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
JPMorgan says Tether’s growing dominance is negative for the cryptocurrency.
Share
Facebook Twitter LinkedIn Pinterest Email

The recent growth in stablecoin market capitalization is encouraging, but rope USDT

-0.09%
That raises concerns, according to JPMorgan.

“Tether is largely at risk due to its lack of regulatory compliance and transparency,” JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report Thursday. “We therefore view the increased focus on Tether over the past year as a negative for the stablecoin world and the cryptocurrency ecosystem more broadly.”

Stablecoin issuers face regulatory risks globally, analysts said. In the United States, the Clarity for Payment Stablecoins Act is awaiting approval by Congress. Meanwhile, in Europe, the Cryptocurrency Asset Market (MiCA) regulation is expected to be partially implemented in June this year. Therefore, according to analysts, stablecoin issuers that strictly adhere to existing regulations can benefit from the impending regulatory scrutiny and potentially increase their market share.

“I am delighted to read that JPMorgan has recognized the importance of Tether and the stablecoin technology our company has created,” Tether CEO Paolo Ardoino told The Block. “But the talk about centralization at JPMorgan, the world’s largest bank, seems a bit hypocritical to me.”

“Tether USDT’s success is driven by its financial reliability, strong reserves, and commitment to emerging markets and developing countries. Entire communities use USDT as a lifeline to protect their families from high inflation and national currency devaluation,” said Ardoino. added:

JPMorgan on USDC

Circle, Publisher USDC

-0.18%
Stablecoin, recently secretly The move signals Circle’s intention to expand internationally and actively prepare for upcoming stablecoin regulations, according to JPMorgan analysts.

Stablecoins serve as a bridge between the traditional finance and cryptocurrency worlds and function like ‘cash’ in cryptocurrencies, analysts said. Their expansion means more money flowing into cryptocurrencies from traditional finance, more cash circulating in the cryptocurrency space, and increased collateral, making the cryptocurrency financial system more stable, they added.

However, Tether’s growing market share and regulatory uncertainty are having a negative impact on the market, according to analysts.

Tether said Wednesday that it reported net profit of $2.9 billion in the fourth quarter, with excess reserves backing USDT tokens in circulation at a record high.

Cryptocurrency VC Funding

Apart from stablecoins, venture capital funding is another major source of capital for the cryptocurrency ecosystem, analysts said. However, after showing improvement in November of last year, cryptocurrency funds sank again in December 2023 and January 2024. “This likely reflects the capital constraints VC firms have experienced over the past two years as interest rates rise and project valuations fall, making exits more difficult,” the analysts said.

Cryptocurrency VC firms are now more cautious about capital allocation, preferring mature projects and those focused on web3 infrastructure, analysts said. They also noted that growing demand for AI is driving away investments in blockchain and cryptocurrency projects.

(Update with comments from Tether CEO Paolo Ardoino)


Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

SOL Leverage Longs Jump Ship, is it $ 200 next?

September 24, 2025

Bitcoin Treasury Firm Strive adds an industry veterans and starts a new $ 950 million capital initiative.

September 16, 2025

The best Solana depin project to form the future -Part 2

September 8, 2025
Add A Comment

Comments are closed.

Recent Posts

BTCC Exchange Partners With NBA All-Star Jaren Jackson Jr. To Inspire Smarter Moves In Sports And Crypto

September 24, 2025

ChainUp Wins Top Crypto Compliance Technology Honor At Thomson Reuters-Presented Awards

September 24, 2025

Fitell Corporation Launches Solana (SOL) Digital Asset Treasury With $100M Financing Facility, With Focus On Yield And On-Chain DeFi Innovation

September 24, 2025

Nebeus Overfunds Equity Crowdfunding Campaign With €3.6M Raised, Reflecting Growing Demand For Regulated Crypto–Finance Solutions

September 24, 2025

Next Binance Coin (BNB) Price Rally 3 Catalysts that can supply fuel

September 24, 2025

Ether Leeum World Fair Announcement

September 24, 2025

SOL Leverage Longs Jump Ship, is it $ 200 next?

September 24, 2025

Navigating Policy & Regulation in Blockchain

September 23, 2025

Flipster Debuts Market’s First USD1 Perps For BTC, ETH, SOL, XRP, And DOGE

September 23, 2025

BYDFi Joins Korea Blockchain Week 2025 (KBW2025): Deepening Web3 Engagement

September 23, 2025

MEXC Brings Immersive Experience With ‘0 Fee Lounge’ To Token2049

September 23, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

BTCC Exchange Partners With NBA All-Star Jaren Jackson Jr. To Inspire Smarter Moves In Sports And Crypto

September 24, 2025

ChainUp Wins Top Crypto Compliance Technology Honor At Thomson Reuters-Presented Awards

September 24, 2025

Fitell Corporation Launches Solana (SOL) Digital Asset Treasury With $100M Financing Facility, With Focus On Yield And On-Chain DeFi Innovation

September 24, 2025
Most Popular

Solana set records for monthly new and active addresses amid rising prices.

December 24, 2023

Blockchain as a solution for financial surveillance issues

February 7, 2025

Crypto analyst Dan Gambardello predicts Cardano to hit $11 and Ripple to surge 40% while new tokens emerge.

November 24, 2023
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.