Paolo Ardoino, Tether’s former CTO who is now the CEO of the leading stablecoin project, recently highlighted the company’s significant earnings and emphasized the global use of USDT as a hedge against inflation.
Ardoino told the Wolf of All Streets Podcast that Tether (USDT) has grown in circulation over the past year, even as other cryptocurrencies have experienced volatility. Tether has its own equity and capital, generated through holding US treasuries and short-term investments with proper risk management. He also mentioned that Tether still holds $72.6 billion in U.S. treasury bills.
Tether remains focused on providing a stablecoin that maintains a one-to-one value with the U.S. dollar. In the last quarter of 2022, Tether generated $700 million in profit. Despite being one of the most scrutinized companies in the world, Tether has stood the test with all the black swan events and high-profile bankruptcies in the web3 space and is working proactively with law enforcement agents, including the Department of Justice, Ardoino says.
The CEO noted that Tether’s mission remains to provide a stablecoin that maintains a one-to-one value with the U.S. dollar, and the company has no plans to go public.
The company has its own equity and capital, generated through holding U.S. treasuries and short-term investments with proper risk management.
According to Ardoino, Tether’s USDT has grown in circulation over the past year, even as other cryptocurrencies and stablecoins have experienced volatility. Despite the bear market, USDT’s market cap is sitting above $85 billion, making it the world’s third-largest crypto. Tether’s recent profitability has led the company to consider diversification.
They are also planning to transform into a comprehensive tech provider, necessitating expertise in crucial fields like energy, communication, and financial infrastructure, he revealed.
Stablecoins and regulatory turbulence
Stablecoins have become a hot topic in the cryptocurrency world recently, with several related stories making headlines.
Brian Brooks, Valor Capital Group partner and former Acting Comptroller of the Currency and Binance U.S. CEO, has stated that demand for stablecoins in developing nations can make the U.S. dollar relevant again.
On July 27, the U.S. House Financial Services Committee made significant progress by advancing a bill aimed at creating a federal regulatory framework for stablecoins, a category of cryptocurrencies usually tied to conventional assets like the U.S. dollar.
The proposed legislation gives the U.S. Federal Reserve the responsibility of outlining the conditions for issuing stablecoins, all while upholding the regulatory power of state authorities. This bill was adjusted earlier to address worries expressed by certain democrats who feared that stablecoin issuers might bypass stringent oversight by choosing to operate under state regulations.
The recent conviction of former cryptocurrency tycoon and FTX founder Sam Bankman-Fried, accused of embezzling over $10 billion from customers and investors, highlights another troubling incident in the cryptocurrency sector. Despite such alarming developments, there appears to be minimal enthusiasm for implementing clear regulatory measures.
Last year, when cryptocurrencies faced significant downturns and several companies faced bankruptcies, the U.S. Congress explored various strategies to regulate the industry. However, progress on these initiatives has been sluggish, particularly amidst the backdrop of this tumultuous year marked by geopolitical tensions, inflation concerns, and the impending 2024 election.
President Joe Biden, who issued an executive order concerning government supervision of cryptocurrency, directed the Fed to assess the potential creation of a digital currency.
Source: https://crypto.news/tethers-paolo-ardoino-debunks-fud-discusses-surging-usdt-market-cap/