Paolo Ardoino Tether CEO, says USDT has transcended its status as a cryptocurrency, emerging as an essential digital dollar worldwide.
According to Tether CEO Paolo Ardoino, USDT, initially conceptualized as a cryptocurrency, has since become the most widely used digital currency globally. During a recent interview, Ardoino discussed the critical role that stablecoins, particularly USDT, have played in the crypto world and beyond.
USDT and other stablecoins allow investors to navigate the frequently volatile cryptocurrency markets by being pegged to real-world assets. This stability is achieved without the risks associated with cryptocurrencies such as Bitcoin.
Nevertheless, the responsibilities of USDT are not limited to cryptocurrency trading. USDT has emerged as a significant alternative to unstable national currencies in countries with economic instability, such as Argentina and Turkey, according to Ardoino.
In the past, residents of these regions were compelled to utilize black markets to acquire US dollars to store value. Nevertheless, Ardoino clarifies that USDT now provides them with a legal and accessible alternative. In contrast to the United States, where users have access to various financial tools, such as credit cards and applications like PayPal and Venmo, he emphasizes the ease of access in these regions.
Robust Market Position
The market’s dominant position is indicative of USDT’s global appeal. Tether’s stablecoin is the third-largest cryptocurrency overall and the largest of its kind, with a market capitalization approaching $120 billion.
Of interest, Circle’s USDC, the second-largest stablecoin, has a market capitalization of $35.6 billion. This significant gap demonstrates how USDT has become essential for users searching for dependability.
This demand is evident in Tether’s robust financial performance. The company reported $1.3 billion in net operating profits in its second-quarter 2024 earnings report. Ardoino announced then that over $1 billion would be allocated to new investments in the upcoming year.
Tether Reserve Conspiracy
USDT’s reserves were the subject of considerable skepticism during Tether’s inception. The stablecoin was subjected to significant regulatory scrutiny due to critics’ doubts regarding its full backing. Nevertheless, the organization has since implemented measures to resolve any uncertainties.
Cantor Fitzgerald, a reputable financial services firm, is responsible for managing its funds. Howard Lutnick, the company’s CEO, has publicly reassured investors that Tether’s reserves are secure and do not contain any secrets.
Ardoino responded to persistent conspiracy theories by stating that detractors should “escape from their mother’s basement.”
It is important to note that Tether, as of July 31, possesses $97.6 billion in US debt, surpassing significant countries such as Germany, the UAE, and Australia. Ardoino stated, “We have enhanced the resilience of the US dollar ownership.” Tether guarantees that the dollar is distributed among numerous entities by maintaining a substantial proportion of US Treasuries. This mitigates the possibility of a sudden sale of T-bills by a single nation or institution, which could potentially affect the market.
