Paolo Ardoino, CEO of Tether, has defended the company’s contribution to the U.S. financial landscape, highlighting that its $115 billion in treasury investments bolsters the stability of U.S. debt.
At a recent event hosted by the Bitcoin Policy Institute on March 11, Ardoino emphasized that Tether’s (USDT) involvement aids in diversifying and reinforcing U.S. debt. “We’ve contributed more to financial inclusion than anyone else,” he asserted. “In the process, we’re purchasing U.S. debt. If we were considered a country, we’d rank as the 18th largest holder of U.S. Treasuries.”
Tether maintains a leading position in the stablecoin sector, accounting for 63% of market share with a market capitalization of $143 billion, as reported by DeFiLlama data. Despite facing regulatory hurdles in Europe, the firm achieved a record net profit of $13 billion in 2024, according to Forbes.
Tether has had to scale back its operations in Europe, while its chief competitor, Circle, has gained a foothold by complying with the Markets in Crypto-Assets regulations.
Tether may also encounter challenges in the U.S. due to emerging regulations. If proposed legislation regarding stablecoins restricts offshore issuers from accessing U.S. Treasury markets, the company may need to adjust its reserve strategies, potentially giving an advantage to U.S.-based competitors like USD Coin (USDC).
In response to mounting regulatory pressures, Tether made a strategic choice in January to move its headquarters to El Salvador after obtaining a Digital Asset Service Provider license. While establishing a physical presence in El Salvador, the bulk of its operations will remain remote.