Analysis suggests that Tether is evolving beyond a simple stablecoin issuer into a global financial empire built on Bitcoin. Galaxy, a cryptocurrency-focused financial firm, recently evaluated Tether as "one of the world's most powerful Bitcoin-based financial institutions" in a report.
Galaxy concluded that Tether's influence is no longer limited to the issuance of USDT. The analysis suggests that the structure of generating massive cash flow based on the world's most widely used stablecoin, which is then reinvested in Bitcoin and across finance and industry, is already well underway.
USDT, currently in circulation, serves as a key liquidity provider in the global cryptocurrency market. It serves as the base currency for inter-exchange settlements, remittances to emerging markets, and digital asset trading, effectively functioning as a "digital dollar." Galaxy assessed that this stable revenue base is what sets Tether apart from traditional financial institutions.
Tether's financial influence is also evident in the lending market. Galaxy analyzed that Tether has established itself as one of the largest centralized lending entities in the cryptocurrency market. This signifies a shift in power in the crypto lending market, previously dominated by Celsius and Genesis, to Tether.
Tether's investment strategy also supports the term "financial empire." Tether continues to invest aggressively across traditional industries and future technologies, including Bitcoin mining, energy infrastructure, data centers, artificial intelligence (AI), communications and messaging platforms, agriculture, and robotics. This structure circulates funds secured through stablecoin issuance into the real economy and strategic industries.
Galaxy has taken particular note of Tether's Bitcoin strategy. Separate from its reserve management, Tether incorporates Bitcoin as a long-term strategic asset, even investing in mining and infrastructure. This approach goes beyond simple holdings and is seen as a way to simultaneously foster the growth and stability of the Bitcoin network itself.
Tether's profitability and financial strength are also assessed to be on a different level from existing cryptocurrency companies. Galaxy analyzed that Tether has generated massive profits in a short period of time and amassed capital strength comparable to that of traditional financial giants. This cash-generating ability is considered a key competitive advantage that allows Tether to flexibly respond to regulations, market volatility, and technological changes.
Galaxy pointed out that viewing Tether solely as a "stablecoin issuer in a regulatory blind spot" no longer reflects reality. Tether has already established itself as a financial infrastructure that dominates global liquidity and a major capital player bridging the real and digital economies, centered around Bitcoin.
As competition among stablecoins intensifies, some analysts believe Tether's next move is not simply a battle for market share, but rather a restructuring of its position within the global financial order. Galaxy predicts that Tether will likely become a significant variable not only in the cryptocurrency industry but also in traditional finance and national monetary systems.
