- Tether CEO Paolo Ardoino highlights Tether’s focus on simplicity and developing countries as key to its growth.
- Tether remains committed to developing nations, with demand rising in countries like Argentina and Turkey.
- Tether maintains strong ties with the US, holding $98 billion in US Treasury Bills and collaborating with federal agencies.
Tether, the operator of the largest dollar-pegged cryptocurrency, is approaching its 10-year anniversary. CEO Paolo Ardoino recently discussed Tether’s growth and the reasons behind its success in an interview with Cointelegraph. Ardoino also emphasized the company’s focus on developing nations and its strong relationship with the United States.
Tether’s Approach and Growth Factors
Tether launched its stablecoin, USDt, in October 2014, originally under the name Realcoin. The goal was to create a stable digital currency that maintained a 1:1 peg to the US dollar, serving as a reliable exchange medium in the volatile crypto market. By 2024, Tether’s market value had grown to $120 billion, far surpassing its competitors, such as USDC.
Ardoino attributed Tether’s rapid growth to the simplicity of its model. He explained, “You send us dollars, we send you the same amount of USDT. You send back the USDT tokens, and we send back the dollars.” He argued that simplicity has allowed Tether to succeed where more complex stablecoin projects have struggled. Tether also stayed focused on stablecoins, avoiding trends like initial coin offerings (ICOs) and non-fungible tokens (NFTs).
Another important factor in Tether’s success, according to Ardoino, is understanding where the biggest demand lies. He explained that the strongest demand for stablecoins comes from developing countries like Argentina, Turkey, and Vietnam, which need access to the dollar. Ardoino said Tether realized this early and focused on providing a digital alternative to cash in these regions.
Relationship with the US Government
Despite prioritizing developing countries, Tether has maintained a strong connection with the United States. Ardoino described Tether’s relationship with the US government as “very good,” emphasizing its compliance efforts. He mentioned that Tether has worked closely with agencies like the Federal Bureau of Investigation and the United States Secret Service, collaborating with 180 law enforcement bodies in 45 countries.
Tether also holds about $98 billion in US Treasury Bills, making it one of the largest holders globally. Ardoino claimed that Tether’s substantial investments in US debt contribute to the country’s financial stability. “Tether is the best friend of the US government because we hold more US treasury securities than Germany, much more than any other competitor or any other financial institution in the world,” Ardoino said.
While Tether has seen significant success, Ardoino acknowledged that the company could have handled public criticisms better during certain periods. He said Tether has actively responded to criticisms since 2021, working to address concerns and clarify misconceptions.
