However, Circle's stablecoin, USDC, is gaining ground on USDT as well. However, Tether has been required by a US Judge to provide financial documents.
According to the order, Tether must present significant financial records proving its support for USDT. It has been claimed that the stablecoin company released USDT as part of a marketing. According to reports, it was done to drive up the price of Bitcoin (BTC).
It has also been asked for information regarding its Bitfinex, Poloniex, and Bittrex accounts. According to the directive, USDT must record every transfer of digital assets or stablecoins. Tether will be required to provide financial statements such as balance sheets, ledgers, and general memos.
The order to divulge financial information was, according to the lawyers representing Tether, attempted to be blocked because it was "very overbroad." It stated that the Plaintiffs had not offered any justification for their desire for such an unlimited production.
Attorney noted that the request is wide and neither necessary for the production nor suited to the plaintiffs' claims. In the meantime, the Plaintiffs are making an effort to defend their request by asserting that it will assist them in resolving particular issues.
The plaintiffs want to know how much US currency was used to support USDT. They acknowledge that the Tether has already agreed to prepare the paperwork needed to create USDT reserves, nevertheless. The court will also receive documents that are sufficient to demonstrate the backing or collateral secured for each issue of the USDT.
The collapse of TerraClassicUSD has also had a significant impact on the worldwide stablecoin market. USDC is overtaking USDT as the market leader for stablecoins. The market capitalization of Tether's USDT is around $67 billion, whereas that of USDC is $50 billion.
