Tether CTO Paolo Ardoino Talks About the Development of the Stablecoin Industry and the Global Layout of USDT

Recently, the Bankless podcast interviewed Tether CTO Paolo Ardoino, delving into Tether’s global business layout, profitability, compliance strategies, and views on the emerging regulatory environment. Here are the key points from the interview:

Attitude towards the GENIUS Act and Compliance Preparation

Paolo stated that Tether holds a positive attitude towards the “GENIUS Act”, considering it an important step in the right direction. He revealed that Tether is promoting a localized stablecoin project in the United States and believes that USDT is in a good position to meet the new regulatory requirements through a “comparable system”.

Tether is currently working with over 250 law enforcement agencies across more than 55 countries. Paolo emphasized that Tether has been adhering to the high standards outlined in the GENIUS Act, including anti-money laundering, compliance, and financial soundness.

Tether’s Financial Status and Reserve Strategy

Paolo disclosed that Tether generated nearly 14 billion USD in profit last year and is expected to be even higher this year. Currently, Tether holds over 125 billion USD in U.S. Treasury bonds, with total equity of approximately 176 billion USD, while the market capitalization of the USDT stablecoin is 155 billion USD, maintaining over 105% in full reserves.

Global Distribution Strategy and Emerging Market Layout

Tether adopts a “bottom-up” promotion strategy globally, expanding its user base through community education, local partnerships, and other means. Paolo believes that Tether’s advantage lies in its ability to reach groups that traditional financial institutions find difficult to serve, especially in developing countries.

Investment Layout and Future Development Direction

Tether Ventures has invested in multiple sectors, including agriculture, energy, biotechnology, and more. Paolo specifically mentioned their layout in decentralized AI platforms, as well as the development of a smart agent wallet SDK (WDKS).

Bitcoin Mining and Gold Stablecoin

Paolo revealed that Tether is expected to become the world’s largest Bitcoin miner by the end of this year. At the same time, Tether is also expanding into the gold stablecoin sector, currently holding about 80 tons of physical gold.

Views on the Global Regulatory Landscape

Paolo hopes that the “GENIUS Act” can become a template for global regulation, believing it is safer and more reasonable than Europe’s MiCA legislation. He criticized Europe’s restrictive attitude towards USDT stablecoins, arguing that it could be detrimental to the global standing of the euro.

The Relationship Between Tether and American Interests

Paolo emphasized that Tether is actually promoting the expansion of the US dollar hegemony, especially in regions where the US presence is weak. At the same time, as one of the major buyers of US Treasury bonds, Tether is also contributing to the decentralized holding structure of US debt.