Summary
- •Crypto is tackling some of the biggest markets in the world, says Bitwise CIO
- •Bitcoin is going after gold, altcoins after payments infrastructure
- •Tether could become one of the most valuable startups in the world
The crypto industry is often underestimated by mainstream finance. According to Bitwise CIO Matt Hougan, critics overlook a key point: the sheer scale of the markets crypto aims to disrupt. In a Sept. 29 memo, Hougan made a bold prediction—particularly regarding stablecoin issuer Tether.
People are often surprised that Bitcoin (BTC) is a $2.3 trillion asset, Hougan noted, which puts it in line with Amazon’s valuation. The comparison makes more sense when you consider that Bitcoin is competing with gold, a roughly $25 trillion market. At the same time, altcoins like Ethereum (ETH) and Solana (SOL) are targeting “issuance, trading, and settlement” markets, especially for tokenized assets.
“These are enormous markets,” says Hougan. “According to McKinsey, the global payments industry processes 3.4 trillion transactions worth $1.8 quadrillion each year. Estimates from SIFMA and Savills peg the combined value of stocks, bonds, and real estate at $665 trillion.”
Tether could be more profitable than Saudi Aramco
For this reason, the news that Tether is targeting a $500 billion valuation should not surprise traders, Hougan wrote. Tether is targeting a huge market, with nearly 100 % share of stablecoin transactions in many regions.
“There’s a chance that many emerging market countries will convert from primarily using their own currencies to using USDT,” Hougan wrote. “If that happens, Tether could end up managing trillions of dollars and capturing all of the interest.”
If so, interest income could make Tether more profitable than Saudi Aramco, the most profitable company in history. The Saudi oil giant earned about $120 billion in 2024. At $3 trillion in assets earning interest, Tether could exceed that, Hougan explained.
Still, competition is likely. Kevin Rusher, founder of the RWA platform RAAC, told crypto.news that stablecoin issuers may increasingly face rivals from non‑fiat‑pegged assets, particularly tokens backed by real estate and gold that aim to protect holders against inflation.