Paolo Ardoino, former CTO of Tether and now CEO of a leading stablecoin project, recently highlighted the company’s impressive gains and emphasized USDT’s role as a hedge against inflation globally.
Aldoino Tell The Wolf of All Streets podcast said that while other cryptocurrencies have experienced volatility, Tether (USDT) circulation has grown over the past year. Tether has its own equity and capital generated through holdings of U.S. Treasury securities and short-term investments with appropriate risk management. He also mentioned that Tether still holds $72.6 billion in U.S. Treasury bonds.
Tether remains focused on providing a stablecoin that maintains one-to-one value against the U.S. dollar. In the last quarter of 2022, Tether generated $700 million in profits. Ardoino said that although Tether is one of the most scrutinized companies in the world, it has withstood all the black swan events and high-profile bankruptcies in the web3 space and actively cooperates with law enforcement agencies, including the Department of Justice.
The CEO noted that Tether’s mission remains to provide a stablecoin that maintains a one-to-one value against the U.S. dollar and that the company has no plans to go public.
The company has its own equity and capital generated through holdings of U.S. Treasury securities and short-term investments with appropriate risk management.
According to Ardoino, Tether’s USDT circulation has grown over the past year, even as other cryptocurrencies and stablecoins have experienced volatility. Despite the bear market, USDT’s market capitalization still exceeds $85 billion, making it the third largest cryptocurrency in the world. Tether’s recent profitability has prompted the company to consider diversification.
He revealed that they also plan to transform into a comprehensive technology provider that requires expertise in key areas such as energy, communications and financial infrastructure.
Stablecoins and regulatory turmoil
Stablecoins have become a hot topic in the cryptocurrency world recently, with several related stories making headlines.
Brian Brooks, Partner at Valor Capital Group, Former Acting Comptroller of the Currency and CEO of Binance US point out Demand for stablecoins in developing countries could make the U.S. dollar relevant again.
On July 27, the U.S. House of Representatives Financial Services Committee advanced a major initiative and made significant progress. bill It aims to create a federal regulatory framework for stablecoins, a class of cryptocurrencies typically pegged to traditional assets such as the U.S. dollar.
The proposed legislation would give the Federal Reserve the responsibility to outline the conditions for issuing stablecoins while maintaining the regulatory powers of national authorities. The bill was tweaked earlier to address concerns expressed by some Democrats that stablecoin issuers might choose to operate under state oversight, bypassing strict regulations.
The recent conviction of former cryptocurrency tycoon and FTX founder Sam Bankman-Fried, accused of embezzling more than $10 billion from customers and investors, highlights another troubling incident in the cryptocurrency space. Despite such alarming developments, there appears to be little enthusiasm for implementing clear regulatory measures.
Last year, when cryptocurrencies faced a sharp decline and several companies faced bankruptcies, the U.S. Congress explored a variety of strategies to regulate the industry. However, progress on these initiatives has been slow, especially against the backdrop of a tumultuous year marked by geopolitical tensions, inflation concerns and the upcoming 2024 election.
President Joe Biden issues executive order on government regulation of cryptocurrencies, guided The Federal Reserve evaluates the potential of creating a digital currency.