Paolo Ardoino Reveals Tether’s Reserve Assets During a presentation at PlanB in Lugano, Switzerland, the chief executive of Tether, Paolo Ardoino, unveiled some important details concerning the USDT stablecoin’s reserve assets. As he explained, the reserves of Tether include close to 100 billion dollars in U.S. treasuries, over 82,000 Bitcoin amounting to 5.5 billion dollars, and 48 tons of gold.
These details were in response to the recent alleged reports that Tether was under investigation by the United States Department of Justice and Treasury, reportedly cited by unnamed sources to The Wall Street Journal.
Wall Street Journal Article Kicks Up Controversy
The crypto space started to sweat on Oct. 25 when The Wall Street Journal published claims that the DOJ was interested in how Tether works. In an open response, Ardoino labelled the claims untrue: “As we told the WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.”
Tether’s Regulatory History and Facilitating the Prevention of Crime
Ardoine then underlined the proactive approach of Tether toward compliance with regulators and supporting law enforcement. He emphasized how Tether had helped recover some $109 million in assets used in fraud and cybercrime since 2014-a proof of the company’s commitment to security and transparency in the digital finance sector.
We work closely with law enforcement to prevent USDT from misuse by rogue nations and criminals. If Tether were under investigation, we would be aware of it,” Ardoino said, countering the WSJ’s allegations.
Regulatory Challenges in the U.S. and Tether’s Future Outlook
In broader commentary on the state of U.S. crypto regulation, Ardoino reflected on how delays in the country’s regulatory machinery have, in many ways, forced numerous highly innovative companies to make their way out of the country. He added that this is likely to change following the 2024 U.S. Presidential election and will see friendlier grounds for digital assets.
Tether’s Growing Market Cap: A Positive Signal for the Crypto Sector
As such, many investors are taking this as a bullish indication for the general cryptocurrency market, considering the market capitalization of Tether’s USDT reached $120 billion as of October 2024. The good market capitalization could be an indicator of increased confidence in Tether’s stability amidst recent controversy stirred by the WSJ article.
Conclusion
While Tether has been scrutinized every which way, the fact that recently Ardoino disclosed the reserves of Tether and now cooperated with the law enforcement authorities at least shows this company is committed to transparency and stability.
