Tether’s $USDT: A Case Study in Crypto Utility Beyond Investing?

Tether built a $120B stablecoin empire with $USDT, the number-one ranked stablecoin.
$USDT is the third cryptocurrency by market cap, behind only $BTC and $ETH.
Over half of $USDT transactions take place on the Tron network.
$USDT demonstrates crypto utility beyond an investment tool.

Tether has a target for $USDT – and it may not be what you think.

As the debate over crypto use cases rages on (even taking center stage in the US political cycle), stablecoins like $USDT run a real-world case study in crypto adoption.

What are the lessons we’ve learned so far?

Let’s take a look. 

Lesson 1: Crypto is More than an Investment Vehicle
We have long perceived cryptocurrencies as primarily high-risk investment vehicles, with volatile assets like Bitcoin often dominating headlines. 

However, stablecoins like $USDT are proving that crypto has practical applications far beyond speculative trading.

Unlike most cryptocurrencies, stablecoins are pegged to stable assets, usually fiat currencies like the US dollar. 

In places like Argentina and Turkey (where inflation runs rampant), $USDT has become a digital dollar, helping residents preserve their wealth without resorting to black markets. 

This allows individuals to avoid the risks associated with local currency depreciation while also maintaining easy access to global financial systems.

With over 300M users globally, Tether has become one of the most significant forces in the digital financial world. It can not only enhance money transfers but is also a lifeline for the unbanked. That’s particularly crucial in developing regions, where traditional banking services often fail. 

Source: CoinMarketCap
As Tether’s CEO Paolo Ardoino clarified in a recent interview with Coindesk, that utility is no accident but rather a core part of $USDT’s business model.

We are not trying to sell our stablecoin to bankers or to the financial elite. Our main focus is the last mile—the people in the street, those five billion users.​Paolo Ardoino

But how does Tether target the man on the street? By looking outside the US and positioning $USDT as a fiat currency transport layer.

Lesson 2: Stablecoins as a Key Transport Layer for Fiat Currencies
A transport layer is a way of getting fiat currencies from one place to another.

Of course, cash is the traditional king of transport layers – it’s physical, simple, and easy to understand. But it’s also hard to transport in large quantities, difficult to secure, and hard to get across international borders.

The US uses several USD transport layers, including PayPal, bank-to-bank transfers, credit cards, debit cards, and Venmo. 

However, move outside the US, and many of those transport layers vanish.

That’s where Tether shines.

Tether facilitates fast, secure, and cost-effective transfers of fiat currencies across borders, especially the US dollar. 

Users can transfer $USDT (or other stablecoins) almost instantly across the globe. Since $USDT is pegged to the US dollar, it acts as a digital proxy for dollars in transit.

Therefore, stablecoins like $USDT are effectively modernizing the infrastructure that supports the global flow of money.

Lesson 3: Tron + Tether Form A Template for Crypto Adoption
$USDT has found worldwide success – but mainly on the Tron network. 

There are at least two reasons why:

Tron’s transaction fees are low, roughly $0.13 currently, and a fraction of the fees on Ethereum, the second-largest $USDT network.
In Ardoino’s words, $USDT ‘works much better outside of the US,’ where low transaction costs are critical for adoption.

Without the competition from banks and well-established, reliable financial networks, $USDT excels in places that trust USD but need a better way to access it.

And with the Tron network, they can access $USDT with minimal transaction costs.

Source: Oklink
That’s why $USDT dominates transactions on the Tron network, far outstripping $TRX, the native Tron token. 

Conclusion: $USDT’s $120B Case Study Proves Crypto’s Utility
Stablecoins like $USDT prove that cryptocurrencies can offer more than just investment (and speculation) opportunities.

They’re already becoming vital tools in the global financial system, often beating traditional financial services regarding stability, efficiency, and inclusivity. 

Perhaps more importantly, $USDT proves that crypto works outside the hallowed halls of financial institutions. 

As the crypto economy grows, we’ll see even more practical applications emerge (like $USDT on the Lightning Network) and cement the role of stablecoins in everyday life.

References

Tether’s USDT Stablecoin Has Uses Beyond Investing (Coindesk)
Top USD Stablecoins By Market Cap (CoinMarketCap)
Tron Token List by Transaction Amount (OKLink)