Stablecoin News – On July 12, 2025, Tether announced the integration of its USDT stablecoin with the Cosmos network, leveraging the Inter-Blockchain Communication (IBC) protocol to enhance cross-chain interoperability.
With a $158 billion market cap, USDT, the largest stablecoin, aims to capitalize on Cosmos’s thriving ecosystem, which saw a 10.31% surge in its native token ATOM due to stablecoin adoption.
This move follows Tether’s decision to end USDT support on less scalable blockchains like Omni and Kusama by September 2025, focusing on high-demand networks.
Cosmos’s IBC protocol, handling over 50% of its monthly traffic with USD-based stablecoins, enables seamless asset transfers across blockchains, reducing reliance on centralized bridges.
This integration enhances USDT’s utility for DeFi and cross-border payments, where stablecoins cut remittance costs from 6.6% to under 3%.
Tether’s expansion aligns with the $253 billion stablecoin market’s growth, with 2024 trading volume reaching $37 trillion, far surpassing other crypto assets.
The move comes amid regulatory shifts, with the U.S.’s GENIUS Act, delayed to late July, and the EU’s MiCA framework imposing strict reserve requirements.
Tether’s $8 billion gold reserve in Switzerland bolsters its credibility, addressing past concerns about reserve transparency.
However, the BIS warned on June 24 that stablecoins’ systemic integration could threaten monetary sovereignty, urging global oversight.
Cosmos’s decentralized architecture mitigates some centralization risks, which noted concerns about stablecoin control in DeFi.
Challenges include Cosmos’s scalability compared to Solana, where PayPal’s PYUSD thrives, and potential regulatory hurdles as jurisdictions like Shanghai explore yuan-pegged stablecoins.
Tether’s Cosmos integration positions USDT to capture a larger share of cross-chain transactions, but success depends on navigating technical and regulatory complexities in a competitive market.
