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The CEO of Tether says he supports USDT despite market criticism

Paolo Ardoino, the CEO of Tether, just revealed comprehensive details about the assets supporting USDT, which include gold reserves, Bitcoin, and billions of dollars’ worth of US Treasury bonds. Recent scrutiny and reports of U.S. government investigations have coincided with the announcement. However, highlighting Tether’s open operations and dedication to compliance, Ardoino vehemently refuted any allegations of ongoing investigations. The goal of this action is to reassure investors about Tether’s reliability in the volatile cryptocurrency market.

Tether CEO Paolo Ardoino recently revealed important details about the financial reserves underlying the well-known stablecoin, USDT, during a speech at the PlanB Forum in Lugano, Switzerland. Speaking to a worried crowd amid rumors of potential U.S. investigations, Ardoino highlighted Tether’s assets, including sizeable holdings in gold, Bitcoin, and U.S. Treasuries, which collectively sustain the stablecoin with a market value of $120 billion.

According to reports, Tether’s reserves consist of over 48 tons of gold, a sizeable 82,000 bitcoin worth roughly $5.5 billion, and about $100 billion in US Treasury. These resources serve as the foundation for Tether’s stability, which has continued to be essential to trade and liquidity in the cryptocurrency market. A recent article that claimed the U.S. government was looking at Tether for potential violations of anti-money laundering rules and sanctions sparked market trepidation, which Ardoino’s presentation attempted to allay.

“There is no indication that Tether is under investigation,” Ardoino said, vehemently disputing the article’s assertions and denouncing what he called “regurgitated misinformation.” The article is simply restating old stories. He emphasized Tether’s longstanding partnership with law enforcement, citing successful attempts to recover around $109 million linked to unlawful operations since 2014.

In his remarks, Ardoino also discussed the regulatory environment and voiced his worries that American regulations are lagging behind those of other nations. He pointed out that many digital asset firms have moved to more advantageous locations as a result of this lag. He did, however, express hope that after the 2024 presidential election, U.S. regulatory policy would change, thereby fostering a more favorable environment for digital assets.

Ardoino’s presentation focused heavily on Tether’s reserve transparency, particularly in light of the increased interest in stablecoin backing from authorities and investors. Tether has taken proactive measures, such as third-party attestations, to prove the security and liquidity of USDT in response to numerous requests for clarification on its reserves in recent years. In addition to boosting market confidence, this drive for openness aims to meet new regulatory requirements around the world.

Tether has remained a major force in the stablecoin market, with USDT’s market capitalization hitting $120 billion in October 2024. Some investors view this financial milestone as a sign of future market stability and growth, supported by Ardoino’s explanations of Tether’s reserve assets.

Tether’s recent revelations highlight its dedication to fostering trust via openness while negotiating a constantly changing regulatory environment. Tether aims to establish itself as a dependable force in the cryptocurrency industry by outlining the assets supporting USDT and directly addressing public concerns.

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