Paolo Ardoino, the CEO of crypto firm Tether, told CryptoNews he is confident Tether USDT will maintain its dominance amid increasing competition from other stablecoins due to the team’s deep understanding of usage.
Speaking at the Plan B forum in Lugano, Switzerland, Ardoino said Tether’s dominance in the stablecoin market is due to its focus on emerging markets rather than the Wall Street elite.
Ardoino said that despite competition from Circle, PayPal, and others, Tether’s profitability continues to be strong, with $12 billion in profits over two years.
Over the years, Tether has faced scrutiny regarding its reserves and transparency. Arduino told CryptoNews the company has addressed this scrutiny with quarterly attestations and public audits, including recognition from BlackRock’s Larry Fink.
With the rapid growth of the stablecoin market, Tether plans to maintain its dominance amid increasing competition from other stablecoins like USDC and government-issued Central Bank Digital Currencies.
Data from DeFiLIama revealed last week that stablecoins’ total market capitalization was worth $170 billion. This marks a 42.86% increase from the $119.1 billion market capitalization stablecoins saw in November last year, as reported by Rachel Wolfson for CryptoNews.
Tether’s Focus Is on Emerging Markets
Ardoino shared insights into Tether’s global strategy and business model, emphasizing the company’s focus on emerging markets over Western financial hubs.
“When it comes to competitiveness against our product, everyone is focusing on the U.S. and Europe,” Ardoino explained. “That is exactly the places that we are not focusing on, not because we don’t like them, but because… maybe 5% of Europeans have problems. When you go to Turkey, you have 80% of people facing challenges. So you have to pick your battles.”
Ardoino noted that Tether’s multinational team of employees, spanning 70 countries, helps shape the company’s focus on developing regions.
He argued that Tether is designed for real-world issues experienced by its employees’ families and communities in emerging markets.
“I don’t need to sell my product to JP Morgan,” he added.
Regarding Tether’s business model and profitability, Ardoino highlighted the impact of current interest rates.
“We made $12 billion in profits in the last two years,” he said.
Even as rates gradually decline, Ardoino is confident, pointing to Tether’s substantial holdings in short-term U.S. Treasury bills.
“Even if [rates] were to go down to 2%, we have $100 billion in U.S. Treasuries, and 2% on that is still $2 billion per year. We are simple people. We can eat,” he concluded, expressing a straightforward approach to the company’s profitability and resilience in fluctuating financial environments.
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