Tether attained 400 million users globally with its chief executive, Paolo Ardoino, projecting stablecoin multiverse growth besides recent expansion in media and agriculture.
Key Highlights
- Tether CEO Paolo Ardoino revealed stablecoin USDT exceeded 400 million users
- Tether eyes to establish a domestic US stablecoin amid recent regulatory development
- Tether engaging a “Big Four” audit firm for its finances
- Tether diversification to media and agriculture niches
- USDT retains transaction dominance with a $357 billion transaction volume trailed by USD Coin (USDC) $207 billion
Tether’s 400 Million Users Milestone
Tether stamped its mark as the world’s largest stablecoin, with the US hitting the $400 million users milestone. Its chief executive, Paolo Ardoino, hailed the achievement as a critical leap towards its one billion user goal.
Ardoiono attributes Tether’s success to the stablecoin multiverse nature. He revealed in an X post that a new era is beginning, and multiple governments and companies will soon unveil their stablecoins. He acknowledged the milestone attained, particularly in the massive adoption since Tether unveiled its product in 2014.
The bold outlook emerged as Fidelity Investments expressed plans to enter the stablecoin space. This occurred as the crypto project backed by the Donald Trump family, World Liberty Financial, launched the stablecoin USD1. Both initiatives suggest financial institutions harbor a growing interest in rapidly expanding the stablecoin sector.
Fidelity’s digital assets division will handle the stablecoin initiative alongside other engagements in Bitcoin, Ethereum, and Litecoin. Notably, the move shows a keen interest in the stablecoin technology and products among the traditional finance players, following in the footsteps of Ripple Labs and PayPal in unveiling RLUSD and PYUSD stablecoin.
Tether CEO weighed on the regulatory changes as a pathway to create domestic US stablecoin. He added that Tether would patiently monitor the bill requirements, hinting at the possibility of creating a domestic stablecoin for the US market.
Ardoino revealed during his appearance on the ‘On The Brink’ podcast, noting a need for a unique business model. He acknowledges that Tether has yet to actively pursue the US market, thus creating a potential for more growth.
Is Rocky Relationship Over?
Tether has encountered a rocky experience in the past with global regulators. The US is no different for Tether, following a $42.5 million penalty by the Commodity Futures Trading Commission (CFTC) for nondisclosure on its reserve. Since this incident, Tether has recently revealed active engagement with the Department of Justice (DOJ) and Treasury.
Tether hails a connection to the Donald Trump-led administration following the appointment of Howard Lutnick. Previously, he was the Cantor Fitzgerald chair and chief executive who defended Tether publicly. The advocacy traces to Cato Fitzgerald acquiring a 5% stake in Tether. Also, the company began managing the USDT issuer’s reserves in late 2021 during Lutnick’s tenure.
Tether disclosed the plans to resolve the multi-year question on its reserves by engaging a Big Four firm to offer professional audit services. Ardoino considers the full audit on Tether reserves a “top priority.” The company appointed Simon McWilliams as its chief finance executive to facilitate the full audit.
Strategic Expansion Beyond Crypto
Tether has recently expanded beyond the digital assets space after acquiring the second-largest shareholding in Be Water. The Italian media group runs Will and Chora Media, granting Tether key influence in digital content distribution. This follows a 30.4% stake acquired in the €10 million capital settlement. Tether is set to bolter digital content distribution and integration of technological solutions.
A similar expansion is evident in the stablecoin issuer’s entry into agriculture after acquiring 70% of outstanding common stock in Adecoagro S.A. The investment in the South American firm, specializing in sustainable agricultural practices, portrays Tether’s expansion into the conventional markets extends beyond the financial ecosystem.
Ardoino reflects on the grassroots approach to inspire growth in Tether by prioritizing adoption and street operations as traditional finance giants watched from the ivory towers. This approach transformed USDT into an everyday tool in remittances, savings, and transactions for the unbanked population and countries facing currency instability. With the accelerated adoption of stablecoins, Tether is well-positioned to retain leadership.