In a surprising turn of events, Tether, the company behind the USDT stablecoin, is undergoing a significant transformation under the leadership of its new CEO, Paolo Ardoino. Tether has been criticized in the past for the lack of transparency in revealing the composition of its reserves. However, Ardoino is now leading the charge to enhance transparency.
Tether’s Transparency Plans One of the major steps Tether intends to take is the publication of real-time data about its reserves, and this is expected to begin in 2024, according to Ardoino, who discussed these plans with Bloomberg.
This shift in strategy coincided with Ardoino’s appointment as CEO, which marked the transition of the previous executive, Jean-Louis van der Velde, into an advisory role.
In its Q2 report, audited by the accounting firm BDO Italy, Tether disclosed that it had operational profits exceeding $1 billion for the second quarter. The company also revealed that it held more than $3.3 billion in reserves, with approximately $72.5 billion tied to US Treasuries. These reserves include direct investments in T-bills, repurchase agreements, and deposits in money market funds.
It’s worth noting that Tether has become one of the leading global purchasers of US Treasury bills. According to the executive, USDT has accumulated a substantial $72.5 billion in US Treasury bonds, ranking it 22nd in the world in terms of Treasury holdings, surpassing countries such as the United Arab Emirates, Mexico, Australia, and Spain.
Future Objectives Ardoino also revealed his goals, which include increased investments in technology, engaging with regulators, and expanding Tether’s involvement in renewable energy initiatives.
It’s important to mention that Tether faced regulatory challenges in the past, resulting in a $42.5 million fine from the Commodity Futures Trading Commission (CFTC) in 2021. This fine stemmed from allegations that USDT was not fully backed during a significant portion of a 26-month period from 2016 to 2018.
Despite these regulatory hurdles and controversies, USDT remains the dominant stablecoin in the market. In fact, its market capitalization surged to $84 billion this week, marking a remarkable 27% increase since the start of the year, even in a crypto market with limited overall momentum.
Furthermore, a recent study conducted by Brevan Howard confirmed that USDT accounts for a substantial 75% of stablecoin transactions.
