Tether's Dominance Through Partnerships
Arjun Sethi, co-CEO of Kraken, on building the Nasdaq of crypto
Tether won stablecoins the same way Visa won cards, by becoming the default network other companies plug into first. Its edge is less about retail brand and more about being the most useful dollar token for exchanges, wallets, remittance apps, OTC desks, and businesses that need to move money across borders fast. Once enough partners accept USDT, liquidity deepens, spreads tighten, and the next partner has even more reason to choose it.
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For payments and treasury use cases, the key requirement is not just having a stablecoin, it is being able to buy it, sell it, and redeem it in the corridors that matter. Research on stablecoin infrastructure shows businesses care most about reliable off-ramping, market makers, and exchange liquidity on both ends, which favors the biggest tokens.
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This is why Tether is especially strong outside the U.S. In Latin America, Africa, and Southeast Asia, companies and consumers often use stablecoins as practical dollar access for saving, payroll, supplier payments, and remittances. In those markets, the token that local partners already support tends to become the default operating currency.
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Circle shows the contrasting model. It has built a more regulated, enterprise oriented distribution machine through direct mint and redeem tools, developer APIs, Coinbase, payment processors, and financial institution partnerships. But even with stronger compliance positioning, Circle still competes against Tether's earlier start and deeper exchange led liquidity.
The next phase is a land grab for distribution at the application layer. Exchanges like Kraken, fintechs, banks, and payment processors will decide which stablecoins become embedded into everyday flows for payroll, merchant settlement, treasury, and remittances. The issuers that lock in the most integration points will keep compounding liquidity, and liquidity will keep deciding the winners.