Is USDT safe? Explore how Tether works, what backs it, key risks, and why it remains the most-used stablecoin despite regulatory and transparency concerns.
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USDT is everywhere in crypto: powering trades, bridging platforms, and acting as a go-to safe haven when markets turn volatile. Backed by Tether, it promises the stability of a dollar with the speed of digital assets. But how secure is that promise?
In this article, we’ll unpack how USDT works, the risks beneath the surface, and why it remains a key player in the crypto economy.
What is USDT and why it matters
Think of USDT (Tether) as the crypto world's attempt to create digital cash that doesn't give you a heart attack every time you check its price. Launched back in 2014 by a company called Tether Limited, USDT was designed to be a "stablecoin" - a cryptocurrency that maintains a steady 1:1 relationship with a certain fiat currency: the US dollar. One USDT should always equal one dollar. Simple, right?.
Well, like most things in crypto, it's a bit more complicated than that.
USDT has become the utility tool of crypto, offering a fast and flexible option to move in and out of positions without cashing out to traditional fiat. It’s the common language of the crypto ecosystem, enabling smooth transfers, seamless trading, and a place to park value when markets swing.
Tether Limited, the company behind USDT, operates globally, with roots in the British Virgin Islands and operations stretching from Hong Kong to the Bahamas. Unlike central banks, Tether isn’t printing dollars, though: it issues tokens, claiming each one is backed 1:1 by assets in reserve.
With over $160 billion in circulation as of mid-2025, USDT isn’t just a trading tool, it’s foundational infrastructure for the crypto economy. It’s also the largest stablecoin on the market, based on market cap and 24-hour trading volume.
Top cryptocurrencies by market cap at the time of writing. Source.
Is USDT safe?
The short answer? USDT exists in a grey area between "reasonably safe for what it is" and "proceed with caution."
The slightly longer answer? Here's what you need to know at a glance:
What's working:
- Maintained its dollar peg through multiple market crashes
- Backed by a mix of cash, government securities, and other liquid assets
- Most widely accepted stablecoin across exchanges and platforms
- Regular attestations from accounting firms
What's concerning:
- Limited transparency compared to some competitors
- Regulatory uncertainty and past legal issues
- Concentration risk (too big to fail, too big to save?)
- Not fully backed by cash alone
The reality check: USDT has survived crypto winters, bank runs, and regulatory pressure for nearly a decade. While it's not risk-free (nothing in crypto is), it's proven more resilient than many predicted. For short-term trading and payments, most users find it reliable. For long-term wealth storage? That's where you might want to consider your options more carefully.
How USDT is backed: understanding Tether's reserves
Here’s where things get more complex and where much of the scrutiny around Tether lies.
In simple terms, USDT operates like a digital receipt: you deposit dollars, and in return, you get tokens you can use across the entire crypto ecosystem. But what happens to those dollars? Are they sitting in a vault, or being put to work?
Tether has long opted for the investment route. Instead of holding pure cash, it backs USDT with a diversified portfolio of assets. According to its Q1 2025 attestation from BDO, Tether’s reserves looked roughly like this:
The shift toward U.S. Treasuries and away from riskier assets marked a significant improvement in its reserve quality. While not fully audited, Tether does publish quarterly attestations from BDO, providing some visibility into how reserves are managed. It’s not a full audit, but it’s a step forward from the opaque reporting of earlier years.
That being said, past controversies still shape how Tether is perceived. In 2019, Tether admitted that USDT was not fully backed by cash at all times and revealed it had lent $850 million to Bitfinex, its sister company. This led to a high-profile settlement with the New York Attorney General in 2021, requiring Tether to improve transparency and cease operations in New York.
Again, to put it in simple terms: imagine your bank quietly loaning out customer deposits to a related company without clearly telling you. Not necessarily illegal, but definitely a breach of trust for users expecting a 1:1 backed stablecoin.
Regulatory scrutiny & legal risks
If USDT were a person, it would probably have a thick file folder in regulatory offices around the world. Sure, being the largest stablecoin makes you a big target, but Tether has also found itself in the crosshairs of regulators who are still figuring out how to handle the crypto revolution.
In the United States, Tether operates in something of a regulatory twilight zone. The company has faced pressure from agencies like the Commodity Futures Trading Commission (CFTC), which fined Tether $41 million in 2021 for making false statements about being fully backed by US dollars.
The European Union is taking a more structured approach with its Markets in Crypto-Assets (MiCA) regulation, which will require stablecoins to be backed by highly liquid assets. This could actually work in Tether's favour, as they've already been moving in that direction.
Emerging markets present their own challenges. Some countries have embraced USDT as a hedge against local currency instability, while others have banned it outright, not far from a global game of regulatory whack-a-mole.
For users, the regulatory risks are real but indirect. If major jurisdictions crack down hard on Tether, it could affect the token's liquidity and usability. However, a complete overnight shutdown seems unlikely given USDT's deep integration into the crypto ecosystem.
The bigger risk might be increased compliance requirements that could make using USDT more cumbersome, similar to how traditional banking has become more regulated over time.
How safe is USDT for holding assets?
This is where we need to have an honest conversation about what "safe" means in crypto land.
For short-term use (days to weeks):
USDT works pretty well. If you're trading crypto or need to park funds briefly between investments, it's like using a decent hotel - not your forever home, but comfortable enough for a short stay.
The peg has held remarkably well through various market conditions, and liquidity is excellent across most major platforms.
For medium-term holdings (months):
Here's where things get a bit more nuanced. USDT has survived multiple "stress tests", including the Terra Luna collapse, FTX implosion, and various banking sector scares. However, you're essentially trusting that Tether's reserve management continues to work smoothly and that no major regulatory bombshell disrupts operations.
For long-term wealth storage (years):
This is where many experts start raising eyebrows. Holding large amounts in any stablecoin for extended periods comes with risks that compound over time. You're exposed to regulatory changes, potential company mismanagement, and the general "unknown unknowns" that come with relatively new financial instruments.
Essentially, USDT is like keeping money in a foreign bank account. It might work great for a while, but you're subject to the laws, regulations, and business practices of entities outside your home jurisdiction.
The key insight from the crypto community is diversification. Even USDT supporters rarely recommend putting all your eggs in the Tether basket.
Security best practices when using USDT
Using USDT safely isn't just about trusting Tether - it's also about protecting yourself from the various ways things can go wrong in the crypto world.
Platform risk management: Remember, USDT is only as safe as the platform you're using it on. The token itself might be fine, but if you're holding it on a sketchy exchange that gets hacked or goes bankrupt, you could lose everything. Stick to regulated platforms only.
Diversification strategies: Many crypto users often split their stablecoin holdings across multiple tokens and platforms. Think of it as not putting all your digital eggs in one digital basket. As an example, some might hold 40% USDT, 40% USDC, and 20% in other stablecoins or traditional assets.
For crypto beginners: Start small, learn the ropes, and, if you wish, gradually increase your holdings as you become more comfortable. Use well-established exchanges for your first purchases, enable two-factor authentication on everything, etc. Treat your crypto security like you would your online banking, that's essentially what it is.
USDT vs other stablecoins
The stablecoin world isn't a one-horse race, and understanding the alternatives helps put USDT's safety in perspective.
USDT vs USDC
USDT dominates in usage and global liquidity. It's the most widely accepted stablecoin across exchanges, DeFi platforms, and payment rails. But it has faced criticism over the years for a lack of full audits and historical opacity around reserves.
USD Coin (USDC), issued by Circle, takes a different approach. It’s often seen as the “regulated” stablecoin, with monthly attestations and a conservative reserve mix (primarily cash and short-term U.S. Treasuries).
- USDT is ideal for fast-moving markets and broad platform compatibility.
- USDC appeals to those who prioritise transparency and regulatory oversight.
USDT vs DAI
DAI takes a completely different route. Issued by MakerDAO, it’s a decentralised stablecoin backed by overcollateralised crypto assets like ETH, not fiat. There’s no single company behind it, just smart contracts and community governance.
While DAI offers full on-chain transparency and avoids centralised custodians, it also comes with higher complexity and potential risks tied to smart contract bugs or extreme market conditions.
- USDT provides speed and simplicity, backed by a traditional corporate structure.
- DAI offers a decentralised alternative, ideal for DeFi-native users.
USDT vs BUSD
BUSD, once a major player backed by Binance and Paxos, was phased out in 2024 due to regulatory pressure. It serves as a reminder that centralised stablecoins depend on both market forces and compliance frameworks, and can be wound down unexpectedly.
While USDT remains standing, BUSD’s sunset reinforces the importance of evaluating who’s behind the stablecoin and how stable their operations really are.
What happens if Tether fails?
Let's play out a hypothetical scenario: what if USDT actually collapsed?
Given USDT's role as the primary trading pair and liquidity source for much of the crypto market, a Tether failure would be like removing a major highway from a city's transportation network. The immediate effects would likely include:
Market chaos: Traders scrambling to exit USDT positions would create massive selling pressure across crypto markets. We're talking about potentially the largest fire sale in crypto history, as billions of dollars worth of USDT holders try to convert to other assets simultaneously.
Liquidity crisis: Many smaller cryptocurrencies rely heavily on USDT trading pairs. Without this liquidity, some tokens might become effectively untradeable, at least temporarily.
Contagion effects: Other stablecoins might face runs as confidence in the entire sector erodes. Even well-managed stablecoins could struggle if everyone tries to redeem at once.
The silver lining: The crypto ecosystem has become more resilient over time. Alternative stablecoins like USDC have grown substantially, providing some redundancy. Additionally, the market has survived previous "extinction-level events" and adapted.
Conclusion: Is USDT worth the risk?
USDT isn’t perfect, but it’s proven its place in the crypto ecosystem. With high liquidity and global acceptance, it’s a practical choice for trading, payments, and short-term value storage.
However, concerns around transparency and regulatory clarity mean it’s not ideal for long-term holding or users who prioritise full visibility. But like any financial tool, its value depends on how you use it.
The smart approach is to understand the trade-offs, diversify across stablecoins, and align your choices with your goals and risk tolerance. As the space evolves, USDT remains useful, but it’s just one part of a broader digital finance strategy.
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If you've been exploring the world of cryptocurrency beyond Bitcoin and Ethereum, you've probably heard of Sushi. No, not the Japanese dish – we're talking about a powerful player in the decentralised finance (DeFi) space that's been making waves since its dramatic entrance in 2020.
Sushi, or SushiSwap as the platform is called, burst onto the crypto scene with what many called a "vampire attack" on Uniswap, another popular decentralised exchange (DEX). This bold move involved attracting over a billion dollars of liquidity from its competitor in just a few days.
Today, SushiSwap stands as one of the leading decentralised exchanges in the crypto ecosystem, offering a suite of financial services that go well beyond simple token swapping. With its native SUSHI token, the platform has created an ecosystem that allows users to trade, earn, lend, borrow, and more – all without traditional financial intermediaries.
What makes Sushi truly stand out is how it's putting financial power back into the hands of regular users. By democratising access to sophisticated financial tools that were once only available to privileged institutions, Sushi is helping to create a more open, accessible financial system for everyone.
What is Sushi (SUSHI)?
At its core, Sushi is a DEX and DeFi protocol that allows users to trade cryptocurrencies directly with each other without any middlemen. Unlike centralised exchanges, there's no company controlling your funds or verifying your identity – it's just you, smart contracts, and the blockchain.
Think of SushiSwap as an online marketplace where instead of a company facilitating trades, everything runs on code. It's like if eBay operated without eBay the company – just buyers and sellers interacting through an automated system.
The relationship between SushiSwap and SUSHI is important to understand:
- SushiSwap is the platform – the actual decentralised exchange and suite of DeFi services
- SUSHI is the native token that powers the ecosystem – like owning a piece of the project
The Sushi ecosystem has evolved significantly since its launch, now offering a full menu of DeFi services:
- Token swapping (the basic exchange function)
- Liquidity providing (where users can earn fees)
- Yield farming (earning rewards by supporting the platform)
- Lending and borrowing
- Token launches
- NFT marketplace
- Cross-chain functionality (operating across multiple blockchains)
When compared to other DEXs like Uniswap and PancakeSwap, Sushi stands out for its community-first approach and wide range of features. While Uniswap pioneered the automated market maker model that Sushi uses, Sushi expanded on this foundation by adding more ways for users to participate and earn rewards.
And while PancakeSwap operates primarily on the Binance Smart Chain, Sushi has expanded to multiple blockchains, including Ethereum, Polygon, Avalanche, and more.
The history of Sushi
Sushi's history reads like a crypto soap opera – complete with controversy, drama, and unexpected twists. Grab the popcorn.
It all began in August 2020 when an anonymous developer going by the name "Chef Nomi" created SushiSwap as a fork (essentially a copy with modifications) of Uniswap's code. But Chef Nomi didn't just launch a competitor; they executed what became known as a "vampire attack" – a strategy to drain liquidity from Uniswap by offering better incentives.
Users who provided liquidity to Uniswap could stake their LP (liquidity provider) tokens on SushiSwap to earn SUSHI rewards. Then, in a coordinated event called "The Migration," over $1 billion in crypto assets moved from Uniswap to SushiSwap virtually overnight. The crypto community was stunned by the aggressive yet innovative approach.
But the drama was just beginning. Shortly after the successful migration, Chef Nomi suddenly converted a large amount of SUSHI tokens (worth about $14 million at the time) into Ethereum and withdrew it. The community viewed this as an "exit scam," and the price of SUSHI plummeted.
In a surprising turn of events, Sam Bankman-Fried, then-CEO of FTX (a major crypto exchange at the time), stepped in to take control of the project. Days later, Chef Nomi returned all the funds and apologised to the community.
Control of the project was then transferred to a multi-signature wallet controlled by several trusted community members, transitioning SushiSwap to true community governance. Since then, the protocol has seen steady development and expansion, including:
- Launch of Kashi lending platform (March 2021)
- Introduction of BentoBox, a yield-generating vault (Q1 2021)
- Expansion to multiple blockchains beyond Ethereum
- Release of Miso launchpad for new tokens
- Development of Shoyu, an NFT marketplace
Despite its tumultuous beginnings, Sushi managed to establish itself as a serious contender in the DeFi space through continuous innovation and a strong community focus.
How does SushiSwap work?
SushiSwap operates on a model called an automated market maker (AMM), which is fundamentally different from traditional exchanges. Here's how it works in simple terms:
Instead of matching buyers with sellers (the way stock exchanges work), SushiSwap uses liquidity pools – essentially big pots of cryptocurrencies that users can trade against. Imagine a vending machine that's always ready to exchange one token for another, rather than waiting to find someone who wants the opposite side of your trade.
These pools are created and maintained by liquidity providers – regular users who deposit pairs of tokens (like ETH and USDT) into the pools. In return for providing this liquidity, they earn fees from trades that happen in their pool.
When you want to swap tokens on SushiSwap, here's what happens:
- You select the tokens you want to exchange (for example, ETH for USDT)
- Smart contracts calculate the exchange rate based on the ratio of tokens in the relevant liquidity pool
- The more of one token you want, the more expensive it gets (this is called "slippage")
- A small fee (0.3% of the trade) is taken and distributed to liquidity providers
- The tokens are exchanged directly in your wallet
The beauty of this system is that it's all handled by smart contracts – self-executing code on the blockchain. There's no company processing your trade or holding your funds; it's all automated and trustless.
Of this 0.3% fee, 0.25% goes directly to liquidity providers in the pool, while the remaining 0.05% is converted to SUSHI tokens and distributed to SUSHI stakers. This creates a sustainable revenue model where active users earn from the platform's success.
Key features of the Sushi ecosystem
Sushi has evolved from a simple token exchange into a comprehensive DeFi ecosystem. Let's explore the main ingredients in Sushi's expanding menu:
SushiSwap DEX: The heart of the ecosystem is the decentralised exchange where users can swap virtually any ERC-20 token (and tokens on other supported blockchains). With competitive rates and deep liquidity across many trading pairs, it's the foundation of the Sushi experience.
Kashi: This lending and margin trading platform allows users to borrow assets against their crypto collateral. What makes Kashi unique is its isolated risk markets – meaning a problem in one lending market won't affect others, making it potentially safer than some competitors.
BentoBox: Think of this as a smart crypto savings account. BentoBox is a token vault that generates yield on deposited assets while they're waiting to be used in other Sushi products. It's like your money earning interest while sitting in your wallet, ready to use.
Onsen: This liquidity mining program incentivises users to provide liquidity for specific token pairs by offering additional SUSHI rewards. It's named after Japanese hot springs – places where people gather and relax, much like how Onsen gathers liquidity for the platform.
Miso: A launchpad for new tokens, Miso helps projects conduct token sales with various auction types. It's like Kickstarter for new crypto projects, helping them raise funds and distribute tokens fairly.
Shoyu: Sushi's NFT marketplace allows for the creation, buying, and selling of digital collectables. While newer than some competitors, it aims to offer lower fees and better integration with the rest of the Sushi ecosystem.
Cross-chain deployment: Unlike many DeFi protocols that only exist on Ethereum, Sushi has expanded to numerous blockchains including Polygon, Avalanche, Binance Smart Chain, Fantom, and more. This multi-chain approach helps users avoid Ethereum's sometimes high transaction fees while still accessing Sushi's services.
This diverse ecosystem makes Sushi a one-stop shop for many DeFi activities, allowing users to move seamlessly between trading, earning, lending, and more.
SUSHI tokenomics
The SUSHI token is the special sauce that brings the whole Sushi ecosystem together. Let's break down how it works:
Total supply: SUSHI has no maximum supply cap. New tokens are minted at a rate of 100 SUSHI per Ethereum block (roughly every 12 seconds), though this emission rate has been adjusted through governance votes over time.
Token utility: The SUSHI token serves several important functions:
- Governance: SUSHI holders can vote on proposals to change the protocol
- Fee sharing: When staked, SUSHI entitles holders to a portion of all trading fees
- Liquidity mining rewards: Users can earn SUSHI by providing liquidity
- Platform access: Some features may require SUSHI holdings or staking
Governance rights: Holding SUSHI means having a say in the future of the platform. Token holders can propose and vote on changes ranging from technical upgrades to treasury management and new feature development.
xSUSHI mechanism: When users stake their SUSHI tokens, they receive xSUSHI in return. This represents their share of the staking pool, which constantly grows as trading fees are added to it. When users unstake, they get their original SUSHI plus their portion of accumulated fees – making it a passive income opportunity.
Staking rewards: The current APY (Annual Percentage Yield) for staking SUSHI varies depending on platform volume and the number of stakers, but it has historically offered attractive returns compared to traditional finance.
Market performance: As with many cryptocurrencies, SUSHI has experienced significant price volatility since its launch. After reaching all-time highs during the 2021 bull market, the token has settled into a more stable trading range.
The tokenomics of SUSHI are designed to align the interests of users, liquidity providers, and token holders – when the platform succeeds, SUSHI holders benefit through increased value and fee sharing.
How to buy and sell SUSHI
Looking to get your hands on some SUSHI tokens? Here's how you can do it through the Tap app:
How to buy SUSHI on the Tap App:
- Download the Tap app from your device's app store
- Create an account and complete the required verification
- Fund your account using a supported payment method (bank transfer, card, etc.)
- Navigate to the crypto section and search for SUSHI
- Enter the amount you want to buy
- Review the transaction details and confirm your purchase
- Your SUSHI tokens will appear in your Tap wallet
How to sell SUSHI on the Tap App:
- Navigate to your SUSHI wallet in the app
- Select the Sell option
- Enter the amount you want to sell, and what currency you would like in return (crypto or fiat)
- Review and confirm the transaction details
- Your desired currency will appear in the relevant Tap wallet
Conclusion
Sushi has come a long way from its controversial beginnings to establish itself as a cornerstone of the DeFi ecosystem. What started as a fork of Uniswap has evolved into a comprehensive financial platform that offers trading, earning, lending, and more – all without traditional financial intermediaries.
By addressing one of the biggest pain points in DeFi – high Ethereum gas fees – through multi-chain deployment, Sushi makes decentralised finance more accessible to everyday users.
As with any cryptocurrency project, Sushi faces challenges and competition, but its innovative features, passionate community, and continuous development make it a project worth watching in the years to come.
In the same way that Bitcoin revolutionised the financial landscape, stablecoins are here to revolutionise international payments. And they’re ready to go.
We know that in the high-stakes world of global commerce, every second and every cent counts. Now there is a financial technology that can slice through the bureaucratic red tape of international payments, eliminating weeks of waiting and thousands in unnecessary fees.
Welcome to the stablecoin revolution – a game-changing innovation that's quietly rewriting the rules of global business transactions.
The hidden cost of traditional payments
Traditional international payments can often feel like navigating a labyrinth blindfolded. Banks and financial intermediaries create a complex web of fees, delays, and opacity that can transform what should be a straightforward transaction into a costly, time-consuming nightmare.
Multinational corporations have long accepted these inefficiencies as an unavoidable cost of doing business – until now.
Enter stablecoins
Stablecoins represent more than just a technological upgrade; they're a strategic weapon for forward-thinking businesses. Unlike volatile cryptocurrencies, these digital currencies are anchored to stable assets like the Euro or U.S. dollar, providing a rock-solid foundation for international transactions.
Breaking down the benefits:
- Transforming cost structures
Stablecoins don't just reduce costs – they fundamentally reimagine them. By eliminating intermediaries, businesses can slash transaction fees by up to 80%. For a mid-sized multinational, this could mean millions of dollars saved annually, redirected towards innovation, expansion, or talent acquisition.
- Lightning fast transactions
Where traditional bank transfers crawl, stablecoins sprint. A transaction that once took 3-5 business days can now be completed in minutes. Offering a serious competitive advantage - imagine closing an international deal before your competitors have even processed their paperwork.
- Predictability in an unpredictable world
Currency volatility has long been the bane of international business. Stablecoins provide a predictable, consistent value that allows financial planners to create robust, long-term strategies without constantly hedging against exchange rate fluctuations.
The transparency revolution
Blockchain ensures that both sides of the transactions are fully in the know, at all times. Every single transaction is recorded on a distributed ledger, creating an immutable audit trail.
For compliance officers and financial controllers, this means real-time tracking, instant verification, and dramatically reduced risk of fraud.
Offering a new paradigm of business expansion
Offering a passport to global business dealings, small and medium enterprises can now compete on an international stage without the traditional barriers of complex banking relationships or prohibitive transaction costs.
Despite the technological sophistication, the most significant breakthrough of stablecoins is fundamentally human. They restore trust in a financial system that has become increasingly opaque and complex. By providing clear, instantaneous, and secure transactions, stablecoins are rebuilding the most critical currency in business: confidence.
Getting started with stablecoins in business
How stablecoins actually work
Before the “how”, let’s explore the “what”. At their core, stablecoins are digital tokens that operate on blockchain networks but maintain a stable value by being pegged to traditional assets. Unlike Bitcoin or Ethereum, which can fluctuate wildly in price, stablecoins aim to maintain a consistent value, typically 1:1 with a fiat currency like the Euro or US dollar.
The stability is maintained through one of three primary mechanisms:
- Fiat-collateralized: Backed by reserves of traditional currency held by a custodian
- Crypto-collateralized: Backed by other cryptocurrencies with excess collateral to account for volatility
- Algorithmic: Use smart contracts to automatically expand or contract the supply based on demand
For business purposes, fiat-collateralized stablecoins offer the most straightforward and trusted solution, essentially functioning as a digital version of the backing currency with blockchain-powered benefits.
Popular stablecoins for business transactions
Several stablecoins have emerged as leaders in the business space:
US dollar-backed stablecoins:
- USDC (USD Coin), USDT (Tether), USDP (Pax Dollar)
Euro-backed stablecoins:
- EUROC (Euro Coin), EURS (Stasis Euro), agEUR (Angle Euro)
Crypto-backed stablecoins:
- DAI (DAI), FRAX (Frax), USDD (USDD)
Multi-currency backed stablecoins:
- XSGD (Xfers Singapore Dollar), CAUD (TrueAUD), NZDS (New Zealand Dollar Stablecoin)
For most business applications, USDC and USDT offer the most immediate utility due to their widespread acceptance and established compliance frameworks. Be sure to research the ones you are interested in before diving in.
Getting started with the Tap App
The Tap app provides one of the most streamlined onboarding experiences for businesses looking to leverage stablecoins. Get in touch with us here, and an account manager will make contact and discuss how stablecoins can assist with your business needs.
We’ll run you through the entire process – from concept to implementation – explaining everything along the way and ensuring all your questions are answered.
Looking forward
As blockchain technology continues to mature, stablecoins are poised to become more than an alternative – they'll become the standard. Forward-thinking businesses aren't just adopting this technology; they're positioning themselves at the forefront of a global financial transformation.
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On Friday, 7 March 2025, the White House held its first-ever Crypto Summit, marking a major turning point in how the U.S. government views the crypto industry. The event gathered top industry leaders, policymakers, and key players to discuss the future of digital assets in the U.S.
In this article, we explore what people expected from the summit, what actually happened, and how it’s already shaping the crypto market.
What was anticipated
Before the summit, the crypto community was cautiously optimistic. The Trump administration had already shown interest in digital assets—especially after President Trump appeared at Bitcoin 2024, which got mixed reactions from the market.
Many investors and industry leaders were hoping the summit would bring clearer rules, encourage innovation, and fix past regulatory issues.
Hype grew even more after the announcement of an executive order to create a Strategic Bitcoin Reserve, raising expectations that Bitcoin might soon play a bigger role in the U.S. economy. Spurring a 12% increase across the crypto market, Bitcoin’s price rose above $92,000 in anticipation of the meeting.
Summit proceedings
The summit featured prominent figures such as Michael Saylor (of Strategy), Brian Armstrong (of Coinbase), and Brad Garlinghouse (of Ripple), reflecting the administration's commitment to engaging with key industry stakeholders.
One of the most significant highlights of the gathering was President Trump signing an executive order to create a U.S. Strategic Bitcoin Reserve. The plan is to boost the country’s economic strength by holding Bitcoin seized through asset forfeitures. Described as a “virtual Fort Knox” for digital gold, managed by the Treasury.
Data from Arkham Intelligence reveals that the U.S. government presently owns 198,109 Bitcoin worth $17.5 billion based on current market values.
The executive order also requires federal departments to review their cryptocurrency holdings and find ways to acquire more Bitcoin through “budget-neutral” strategies without burdening taxpayers.
There was also talk about creating a Digital Asset Stockpile, which would include other cryptocurrencies like XRP, Solana (SOL), and Cardano (ADA), to boost the credibility of these digital assets.
Strategic Bitcoin Reserve vs Digital Asset Stockpile
The U.S. government’s approach to digital assets involves two distinct initiatives: the Strategic Bitcoin Reserve and the Digital Asset Stockpile.
The Strategic Bitcoin Reserve aims to hold Bitcoin long-term, using confiscated Bitcoin rather than new government purchases, which has sparked controversy due to Bitcoin's volatility and its decentralised nature, which some argue conflicts with government control.
Critics also worry that the reserve’s reliance on confiscated assets may lead to politically motivated holdings, rather than a clear strategic plan.
In contrast, the Digital Asset Stockpile, managed by the Treasury, will hold other cryptocurrencies like Ethereum, XRP, Solana, and Cardano. Unlike the Bitcoin reserve, the stockpile may allow for more flexibility, including potential sales of its assets.
While the Bitcoin reserve aims to solidify Bitcoin’s place as a strategic asset, the inclusion of other cryptocurrencies in the stockpile raises questions about the government’s broader digital asset strategy. Many aspects still remain unclear.
Market reactions over the outcome
The market's reaction to the summit was mixed. At first, Bitcoin's price surged on optimism. But when it became clear that the Strategic Bitcoin Reserve would rely on existing government holdings instead of new purchases, sentiment shifted. The executive order signed on Thursday confirmed that the reserve would only include Bitcoin the government already holds—mostly from asset forfeitures in criminal and civil cases. Many had expected fresh Bitcoin buys for the fund. While that seems unlikely in the short term, the door has been left open.
This led to a significant price correction, with Bitcoin's value dropping to around $85,000 before stabilising at approximately $88,000, marking a decline of over 3% within 24 hours. Within days, the price dropped to below $80,000.
In addition, Bitcoin ETFs saw significant outflows, with $370 million pulled out as investors reconsidered the impact of the government’s strategy. The wider cryptocurrency market mirrored this volatility, reflecting the complex dynamics between government policy announcements and investor sentiment.
Navigating the future of cryptocurrency regulation
The White House Crypto Summit was a landmark event in how the U.S. government engages with the crypto industry. While the creation of the Strategic Bitcoin Reserve shows a move toward officially recognising digital assets, the market’s reaction made it clear that investors want clearer, more practical policies. The U.S. is at a pivotal moment in shaping the future of digital finance.
The White House Crypto Summit signalled a shift toward embracing crypto, but the real challenge lies ahead—crafting policies that fuel innovation while keeping markets steady. With the right approach, the U.S. could very well lead the global financial revolution, unlocking the full potential of digital assets and setting the stage for a future where opportunity and stability go hand in hand.
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Ever wondered how companies launch those shiny credit cards with their logos on them? Let's dive into the world of card programs and break down everything you need to know to launch one successfully.
What's a card program, anyway?
Think of a card program as your business's very own payment ecosystem. It's like having your own mini-bank, but without the vault, technical infrastructure and security guards. Companies use card programs to offer payment solutions to their customers or employees, whether a store credit card, a corporate expense card, or even a digital wallet.
As you’ve probably figured, the financial world is quickly moving away from cash, and card payments are becoming the norm. In fact, they're now as essential to business as having a product, website or social media presence.
Why should your business launch a card program?
Launching a card program isn't just about joining the cool kids' club – it's about creating real business value and heightened exposure. Here's what you can achieve:
Keep your customers coming back
Remember those loyalty cards from your favourite coffee shop? Card programs take that concept to the next level. When customers have your card in their wallet, they're more likely to choose your business over competitors. Plus, every time they pull out that card, they (and everyone else around) see your brand.
Show me the money!
Card programs open up exciting new revenue streams. You can earn from:
- Interest charges (if applicable)
- Transaction fees from merchants
- Annual membership fees
- Premium features and services
- Insights and information on spending habits
Know your customers better
Want to know what your customers really want? Their spending patterns tell the story. Card programs give you valuable insights into customer behaviour, helping you make smarter business decisions.
Understanding the card program ecosystem
Let's break down the key players in this game:
The dream team
Picture a football team where everyone has a crucial role:
- Card networks (like Visa and Mastercard) are the referees, setting the rules
- Card issuers (like Tap) are the coaches, making sure everything runs smoothly
- Processors (overseen by Tap) are the players, handling all the transactions on the field
Open vs. closed loop: what's the difference?
Open-loop and closed-loop cards differ in where they can be used and who processes the transactions. Let’s break this down:
Open-loop cards:
These cards are branded with major payment networks like Visa, Mastercard, or American Express, and are accepted almost anywhere the network is supported, both domestically and internationally.
Examples: Traditional debit or credit cards, prepaid cards branded by major networks.
Pros: Wide acceptance and flexibility.
Cons: May come with fees for international use or transactions.
Closed-loop cards:
Cards issued by a specific retailer or service provider for exclusive use within their ecosystem. These cards are limited to the issuing brand or select partners.
Examples: Store gift cards (like Starbucks or Amazon), fuel cards for specific gas stations.
Pros: Often come with brand-specific rewards or discounts.
Cons: Limited to specific merchants; less flexibility.
Challenges that may arise
Let's be honest – launching a card program isn't all smooth sailing. Here are the hurdles you'll need to jump:
The regulatory maze
Remember trying to read those terms and conditions? Well, card program regulations are even more complex. You'll need to navigate through compliance requirements that would make your head spin.
Security
Fraud is like that uninvited guest at a party – it shows up when you least expect it. You'll need robust security measures to protect your program and your customers.
We’ve designed our card program to handle these niggles, so that you can bypass the challenges and reap the rewards. With a carefully curated experience, we take care of the setup, programming and hardware so that you can focus on the benefits and users.
Closing thoughts
Launching a card program is like building a house – it takes careful planning, the right tools, and expert help. But when done right, it can become a powerful engine for business growth.
Contact us to get started on building a card program tailored to your company. After all, the future of payments is digital, and there's never been a better time to get started.
Currency volatility is a challenge that businesses operating across borders can’t afford to ignore. Exchange rate fluctuations can erode profits, increase costs, and create financial uncertainty, making it difficult for companies to plan effectively.
For businesses that deal with international transactions, traditional solutions like foreign exchange (forex) hedging can be expensive and complicated. Thankfully now, there's a smarter, more efficient alternative—stablecoins.
Stablecoins offer businesses a way to bypass the unpredictability of currency fluctuations by providing a digital asset pegged to stable currencies like the US dollar. The black and white of it is that they make cross-border payments faster, cheaper, and more reliable.
In this article, we’ll explore why stablecoins are an ideal solution for tackling currency volatility in global financial management.
The challenges of currency volatility in global finance
Global businesses are constantly exposed to currency risks, for a range of reasons, including:
- Geopolitical events – Trade wars, conflicts, or political instability can impact currency values.
- Inflation and interest rate changes – Central bank policies can cause sudden shifts in exchange rates.
- Market speculation – Traders and investors can drive rapid price swings.
For businesses, currency volatility can lead to higher transaction costs, as moving money internationally becomes more expensive. It can also result in unpredictable revenue, making it difficult for companies operating in multiple countries to manage pricing. Additionally, if a currency depreciates suddenly, businesses may face financial losses as profits shrink overnight.
Many businesses use forex hedging strategies (such as forward contracts and options) to manage risk, but these methods are often costly, complex, and require expert knowledge. A simpler, more efficient solution is needed—and that’s where stablecoins come in.
Why stablecoins are the perfect hedge for businesses
Stablecoins offer a practical way for businesses to protect themselves against currency volatility. Unlike traditional cryptocurrencies (which are often highly volatile), stablecoins are pegged to a fiat currency providing a reliable and steady value.
Key benefits for businesses:
- Price stability – With stablecoins, businesses don’t have to worry about sudden exchange rate swings affecting their revenue or costs.
- Fast, low-cost transactions – International payments using stablecoins settle in minutes, not days, with significantly lower fees than traditional banking systems.
- No dependence on banks – Unlike wire transfers, stablecoin payments don’t require intermediaries, reducing delays and extra costs.
- Transparent and secure transactions – Built on blockchain technology, stablecoins ensure auditable, tamper-proof payments, adding an extra layer of security.
For businesses engaging in global trade, payroll, treasury management, or e-commerce, stablecoins offer a modern financial tool to streamline operations and avoid currency-related risks.
Choosing the right stablecoin for your business needs
Not all stablecoins are created equal. Businesses need to choose the right one based on factors like trust, regulation, and network efficiency.
Top stablecoins to consider:
💰 USDT (Tether) – The most widely used stablecoin, but with some concerns around transparency.
💰 USDC (USD Coin) – Fully backed by regulated financial institutions, making it a trusted option.
💰 DAI – A decentralized stablecoin, offering stability without relying on a central issuer.
💰 EUROC (Euro Coin) – A fully backed euro-denominated stablecoin issued by Circle, providing a stable digital alternative for euro transactions.
Key considerations:
- Regulatory compliance – Ensure the stablecoin follows financial regulations in your operating regions.
- Blockchain network – Some stablecoins operate on multiple blockchains (Ethereum, Tron, Solana). Choosing the right network affects transaction speed and fees.
- Liquidity and acceptance – Businesses should opt for stablecoins with high liquidity and broad industry adoption.
Choosing the right stablecoin is essential for seamless global transactions while ensuring stability and security.
The future of stablecoins in global finance
Stablecoins are no longer just a niche tool—they are gaining mainstream acceptance among businesses, financial institutions, and regulators.
Growing adoption – Companies like PayPal and Visa are integrating stablecoins into their payment systems.
Institutional backing – Banks and investment firms are exploring stablecoin use for settlements and asset management.
Regulation on the rise – Governments are working on stablecoin frameworks, aiming to balance innovation with security.
Emerging financial products – Stablecoin-based loans, savings accounts, and remittance services are expanding the financial ecosystem.
As stablecoins evolve, their role in global financial management will only grow, making them a key tool for businesses worldwide.
Conclusion
Currency volatility remains a major challenge for businesses operating globally, as traditional hedging strategies are often expensive and inefficient, leaving companies searching for a better way to manage financial risk.
As outlined above, stablecoins offer a simple, effective, and low-cost solution to tackling currency fluctuations. By providing price stability, fast transactions, and reduced banking dependency, stablecoins empower businesses to operate seamlessly across borders.
For companies looking to future-proof their global financial operations, stablecoins are an answer worth considering. Now is the time to explore how they can be integrated into your business strategy: and we’re here to help.
The crypto market stands at an intriguing crossroads as we move into 2025. After some landmark events in 2024, including the approval of major ETFs and significant institutional adoption, the digital asset space is evolving from its speculative origins into a more mature market. With this transformation comes both opportunities and challenges that could reshape the current landscape. Here’s what’s worth keeping your eyes on in 2025.
Note: the cryptocurrency market remains a highly complex arena. The trends and developments discussed here are based on current market observations and should not be considered as investment advice. As always, conduct your own thorough research and risk assessment, and consult a financial advisor if necessary.
1. Bitcoin's post-ETF evolution
The introduction of Bitcoin ETFs has fundamentally altered market dynamics. Historical data shows that similar levels of institutional ownership in traditional assets like gold typically precede periods of reduced volatility and steady value appreciation.
BlackRock’s CEO, Larry Fink, recently stated, “Developments could open the floodgate of institutional allocation and drive significant inflows into Bitcoin investment products, particularly BTC spot ETFs, which are likely to see their assets under management (AUM) swell as BTC becomes further entrenched in traditional investment frameworks.”
Whether more digital asset ETFs are approved or more institutional investors enter the market, analysts will be watching closely.
2. Corporate blockchain integration
Beyond simple investment, major corporations are integrating blockchain technology into their operations. According to a report, more than half (52%) of Fortune 100 companies have pursued crypto, blockchain, or Web3 initiatives since the start of 2020. This highlights a significant trend toward blockchain adoption among major corporations.
This corporate adoption could also create additional demand for both established cryptocurrencies and specialised enterprise tokens. Market analysts will be watching whether this continues on the same trajectory.
3. The rise of tokenised traditional markets
Asset tokenisation transforms physical assets like real estate, art, or commodities into digital tokens on a blockchain, representing ownership or shares and simplifying transactions.
A Chainlink report estimates that the tokenised asset market could reach $10 trillion by 2030. As of September 2024, tokenised assets were valued at about $118.6 billion, with Ethereum holding 58% of the market share. This includes everything from real estate and commodities to stocks and bonds.
On top of that, the efficiency gains from tokenisation could potentially reduce transaction costs by up to 90% while enabling 24/7 trading of traditionally illiquid assets.
4. Emerging market crypto adoption
Cryptocurrencies are significantly reshaping financial landscapes in developing economies. The Inter-American Development Bank highlights that crypto platforms have driven down remittance transfer costs, from 6.4% to 1.8%, making cross-border payments more affordable. Meanwhile, the World Bank projects that blockchain technologies could help provide financial services to 250 million unbanked individuals by 2026.
In countries like Venezuela, 35% of the population uses cryptocurrencies as an inflation hedge, a trend noted by the Brookings Institution. Additionally, nations like Kenya, Rwanda, and Panama are leading blockchain innovations in sectors like agriculture, land registration, and financial services, signaling a fundamental shift in economic infrastructure.
5. DeFi 2.0: the next generation
Decentralised Finance (DeFi) is evolving beyond its initial applications. Funds Society, along with other firms, predict that total value locked (TVL) in DeFi protocols will exceed $200 billion by Q4 2025. The focus is shifting from pure lending and trading to more sophisticated applications like tokenised real-world assets, automated portfolio management, and institutional-grade financial products.
This projection aligns with broader industry forecasts. Analysts also anticipate that decentralised exchange (DEX) trading volumes will reach around $4 trillion, capturing about 20% of the market share.
In essence, DeFi is expanding beyond its initial applications, with projections indicating substantial growth in TVL and a shift toward more sophisticated financial products. The integration of traditional financial services and the tokenisation of real-world assets are key trends shaping the future of DeFi.
Market context
It's important to remember that these developments are occurring against a backdrop of broader economic changes, so anything is possible. As the relationship between traditional markets and cryptocurrencies continues to evolve, digital assets are increasingly being recognised as a distinct asset class, rather than just speculative investments.
Looking ahead
While the crypto market has historically been characterised by significant volatility, the institutional infrastructure being built suggests a potentially different pattern emerging. The combination of regulatory clarity, institutional involvement, and real-world adoption could create new market dynamics unlike anything seen in previous cycles.