Tether Stability Under Scrutiny as Risks Mount

Tether (USDT) remains a focal point in the cryptocurrency sector, dominating nearly half of the global trading volume. Pegged to the US dollar, it acts as a vital tool for traders, though questions about its stability persist amidst regulatory challenges and concerns over its backing. USDT is a cryptocurrency that maintains a fixed value relative to the dollar, used widely to reduce volatility and facilitate international transactions. As of May 30, the USDT to Russian ruble exchange rate dropped below 79 rubles, hitting 77-78 rubles on peer-to-peer platforms, marking a significant decline from early 2025 peaks over 105 rubles. Risks for investors include potential reserve shortfalls, regulatory threats, and its involvement in illicit schemes. The lack of independent audits raises transparency issues. Market-wise, stablecoins like USDT are essential, comprising two-thirds of all crypto transactions. The increasing interest from traditional financial giants such as JPMorgan and Bank of America suggests growing competition. Meanwhile, central banks experimenting with digital currencies may pose future challenges to existing stablecoins.