Tether’s CEO, Paolo Ardoino took to X (formerly Twitter) to express his bullishness about his company’s market position. The CEO’s statement came in response to growing competition within the stablecoin market.
Ardoino highlighted the company’s decade-long effort in building an extensive global distribution network, strategic partnerships, and commitment to inclusion for financial services.
USDT holds its ground as stablecoin competition grows
Tether, the issuer of the world’s largest USDT stablecoin, with about $140 billion in market cap, has had its fair share of regulatory scrutiny. In 2021, the Commodity Futures Trading Commission (CFTC) claimed the USDT issuer misrepresented the backing of its stablecoins and fined it $41 million.
The European Union’s Markets in Crypto-Assets (MiCA) regulations went into effect on December 30, and since then, Coinbase has led the movement of exchanges to delist the USDT stablecoins European markets.
On top of the regulatory issues, USDC, a competing stablecoin, poses a considerable threat to USDT’s domination after a year of over 100% growth.
One of the major issues Tether has faced with regulation is that it has never goonmme through an independent audit of its reserves. Ardonio has expressed willingness to be audited, however, he says that no US company wants to audit his company.
In contrast, Tether’s biggest rival, Circle’s USDC is audited by Deloitte, which lends to its credibility and increased demand.
During the PlanB forum in El Salvador, Ardoino expressed confidence that his company is well-positioned in the stablecoin market and holds strong against the competition. He emphasized the extensive distribution network Tether has, which he says separates the company from its rivals. “Many people do not realize that Tether has built one of the most extensive digital and physical distribution networks in human history over the past 10 years.”
He also spoke about Tether’s partnerships, which play a key role in the success of the stablecoin. “While some competitors raise capital from investors and grow their market cap paying incentives to banks to keep their stablecoins in the balance sheet, Tether has 100s thousands of partners, building kiosks across all developing countries digital platforms with tens of millions of users and mind-blowing technology,” said Ardonio.
The CEO also highlighted how Tether is utilizing these partnerships to establish a platform of financial inclusivity, which serves over 400 million customers in emerging markets.
Tether still has big plans
Despite the competition and challenges Tether faces, it is exploring new markets and innovation. The company, in partnership with Reelly Tech, plans to launch a stablecoin pegged to the United Arab Emirates dirham, which would be used to purchase real estate at 30,000 property agents. Ardoino said this would help drive blockchain innovation in the UAE.
Tether is also investing in renewable energy initiatives, including a Bitcoin mining operation in Uruguay.
While Tether is expanding, Circle is also taking a strategic step by planning to relocate its headquarters to New York City ahead of its planned initial public offering (IPO). Moving forward with those plans could see Circle consolidate its regulatory standing and strengthen relationships with traditional finance.
Ardoino remains unbothered by the competition. He highlighted that billions of people lack access to basic financial services because banks don’t find them profitable. The CEO insists that Tether plans to service these underserved users while also contributing to the US economy by purchasing large amounts of US Treasuries, helping to reinforce the dollar’s position as the world’s dominant fiat currency.
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