Tether CTO Debunks FUD as USDT Market Cap Soars


Paolo Ardoino, the CEO of the leading stablecoin project and former CTO of Tether, recently discussed the company’s strong earnings and its global use as a hedge against inflation. He highlighted that Tether (USDT) has seen an increase in circulation over the past year despite other cryptocurrencies experiencing volatility. Ardoino shared that Tether holds $72.6 billion in US Treasury bills and has its own equity and capital generated through holding US treasuries and short-term investments with proper risk management.

The company’s mission remains to provide a stablecoin that maintains a one-to-one value with the US dollar, and it generated $700 million in profits in the last quarter of 2022. Ardoino further highlighted that Tether has stood the test of all the recent black swan events and high-profile bankruptcies in the web3 space and is working proactively with law enforcement agencies, including the Department of Justice. Despite this, the company is not planning to go public.

USDT’s market cap is currently sitting above $85 billion, making it the world’s third-largest cryptocurrency. As such, Tether is looking to diversify, transforming into a comprehensive tech provider with expertise in areas such as energy, communication, and financial infrastructure.

Stablecoins have become a major topic of discussion in the crypto world recently. Brian Brooks, Valor Capital Group partner and former Acting Comptroller of the Currency and Binance U.S. CEO, has commented that demand for stablecoins in developing nations can make the US dollar relevant again.

In addition, the US House Financial Services Committee has made progress on a bill that would create a federal regulatory framework for stablecoins. It would give the Federal Reserve the responsibility of outlining the conditions for issuing stablecoins, while still allowing state authorities to maintain their regulatory power.

The conviction of Sam Bankman-Fried, accused of embezzling over $10 billion from customers and investors, has highlighted the need for regulatory measures in the cryptocurrency sector. However, progress on such initiatives has been slow, partly due to the current geopolitical and economic climate. US President Joe Biden has issued an executive order to assess the potential creation of a digital currency.

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