Tether has formally ended its operations in Uruguay, laying off 30 of its 38 employees and closing the chapter on what was initially planned to be one of its largest infrastructure expansions in Latin America. The decision, confirmed by Uruguay’s Ministry of Labour and Social Security, comes after months of internal evaluation and repeated concerns from the company about the economic feasibility of continuing operations in the country. Tether had envisioned a $500 million investment plan that included three major data centres and a 300 MW renewable energy park combining wind and solar resources. However, the firm deployed only a fraction of that amount, spending just over $100 million before ultimately deciding to withdraw.
Local reports indicate that the company had long raised concerns about Uruguay’s uncompetitive tariff structure and high operational costs. Tether had pushed for adjustments to its power purchase agreement and advocated for a shift to 150 kV power tolls to reduce expenses. Government approval for these changes never materialised, leaving the company with little room to advance its projects. The shutdown illustrates the difficulties crypto and blockchain firms face when attempting to scale in regions where regulatory, infrastructural, or energy-related challenges add significant pressure to already capital-intensive operations.
Despite the setback in Uruguay, Tether’s flagship stablecoin, USDT, continues to dominate global markets. Data from DeFiLlama shows that the stablecoin sector’s market capitalisation has climbed to approximately $305 billion in 2025, with weekly supply growing by around $2.13 billion. USDT alone accounts for more than 60 per cent of the entire stablecoin market, underscoring its importance as a liquidity anchor across exchanges, payment systems, and decentralised applications. Industry analysts say this momentum reflects real-world demand for efficient cross-border settlement tools. Crypto commentator Crypto Patel noted that stablecoins have facilitated more than $50 trillion in on-chain settlement this year, describing the trend as evidence that blockchain-based money movement is becoming a core part of global finance. Custody firm BitGo also reported rising use of stablecoins in everyday transactions, suggesting that adoption is expanding beyond traders and institutional users.
Even with its dominance, Tether faces mounting regulatory and reputational challenges. S&P Global Ratings recently downgraded USDT’s stability score from “constrained” to “weak,” pointing to the company’s increased exposure to assets considered riskier than traditional cash or short-term government securities. According to S&P, these asset classes—including Bitcoin, gold, secured loans, and various corporate bonds—now make up nearly a quarter of Tether’s reserves, a significant increase from last year. Tether CEO Paolo Ardoino pushed back strongly against the downgrade, arguing that legacy rating models fail to account for the company’s overcollateralized structure.
Additional pressure is emerging in local markets. In South Korea, Bithumb announced it will suspend USDT-based trading services starting November 28, citing regulatory requirements and an upcoming overhaul of its trading platform. The move reflects a broader trend of exchanges tightening compliance frameworks amid global scrutiny of stablecoins and their issuers.
