USDT Approaches 100% in Several Latin American Markets

Oobit’s analysis finds Tether’s USDT accounts for nearly all on-chain stablecoin volume and peer-to-peer trading activity in several major Latin American crypto markets.

The report is based on transaction and exchange data gathered from local and regional trading platforms and peer-to-peer services. Oobit says the shift occurred over the past year as liquidity and user activity concentrated in a single dollar-pegged token.

Oobit’s data show USDT dominates both centralized exchange trading pairs and over-the-counter peer-to-peer volumes used for converting between crypto and local currencies. Local exchanges and payment providers commonly list USDT first and maintain larger liquidity pools for it, the analysis reports.

The firm attributes the concentration to network effects and wide availability: deeper markets for USDT make it easier for traders and retail users to swap between crypto and local currency. The report notes the pattern is most visible in economies with high inflation or restricted foreign-exchange access, where users rely on dollar-pegged stablecoins for savings, remittances and routine payments.

On-ramps and off-ramps that handle fiat conversions often prioritize USDT and provide larger liquidity, and peer-to-peer platforms report higher demand for USDT, the report states. Oobit recommends monitoring liquidity distribution and on-chain flows to track risks to market functioning.

The analysis also flags that alternative dollar-backed tokens show minimal activity in the markets covered. Oobit notes consolidation raises questions about diversification of dollar-linked instruments and the resilience of local crypto markets if operational problems affect USDT.

Tether’s USDT remains the largest stablecoin by market capitalization globally. In Latin America, stablecoins are used for remittances, preserving value and accessing dollar-denominated assets where local currency volatility or capital controls limit traditional dollar access.