Tether CEO Paolo Ardoino has pushed back against criticism of the company’s influence on the U.S. financial system, arguing that its massive holdings in U.S. Treasuries contribute to economic stability.
Speaking at a Bitcoin Policy Institute event on March 11, Ardoino highlighted Tether’s $115 billion investment in U.S. debt, claiming it strengthens the financial system.
“We’ve done more for financial inclusion than anyone else,” he asserted. “And while doing that, we’re buying back U.S. debt. If we were a country, we’d be the 18th largest holder of U.S. Treasuries.”
Despite facing increasing regulatory scrutiny, Tether continues to dominate the stablecoin market, holding a 63% market share and boasting a $143 billion market capitalization, according to DeFiLlama. Additionally, Forbes reports that the company achieved a net profit of $13 billion in 2024.
Tether has been forced to scale back its European operations, losing ground to rival stablecoin issuer Circle, which has gained traction by aligning with the EU’s Markets in Crypto-Assets (MiCA) regulations. European exchanges, including Binance, Crypto.com, and Kraken, have begun delisting Tether’s USDT stablecoin, with Binance set to halt USDT deposits for users in the European Economic Area by March 31.
Regulatory concerns are also intensifying in the U.S. Lawmakers are considering a stablecoin bill that could prevent offshore issuers from accessing U.S. Treasury markets, potentially forcing Tether to revise its reserve strategy while giving an edge to domestic competitors like Circle’s USD Coin (USDC).
In response to tightening regulations, Tether announced in January that it would relocate its headquarters to El Salvador after obtaining a Digital Asset Service Provider license. While the company plans to establish a physical office there, most operations remain remote. “This decision is a natural progression for Tether as it allows us to build a new home, foster collaboration, and strengthen our focus on emerging markets,” said Paolo Ardoino,
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