In a recent interview with Tether CEO Paolo Ardoino, conducted by CryptoSlate’s James Van Straten, Ardoino addressed various critical topics related to Tether, including the FUD surrounding the stablecoin, its holdings in US treasuries, and competition in the industry. Ardoino reflected on the challenges and resilience demonstrated by Tether in 2022, highlighting the exit of bad actors from the crypto industry and the opportunity for Tether to prove its stability.
Ardoino discussed a coordinated attack against Tether in 2022, where attackers attempted to short the stablecoin and create a bank run to prove its lack of reserves. Tether successfully managed large-scale redemptions, showcasing its liquidity and resilience. Ardoino drew parallels between Tether’s handling of the attack and traditional banking failures, emphasizing Tether’s financial stability in challenging situations.
In 2023, Ardoino discussed the failures of major US banks like Silicon Valley Bank, Silvergate, and Signature, and how these failures impacted other stablecoin issuers. He contrasted Tether’s strategy of maintaining a simple and liquid reserve balance sheet, primarily consisting of US Treasury bills, with its competitors’ investments in illiquid long-term municipality bonds. Tether’s substantial holdings in US Treasury bills have helped solidify its relationships with key financial institutions and custodians.
Reflecting on Tether’s past challenges with FUD, Ardoino acknowledged its previous naivety in believing that merely doing good work would dispel doubts. He emphasized the importance of transparency and communication, highlighting Tether’s audit and attestation practices with BDO for quarterly attestations. Despite regulatory pressures and challenges, Ardoino expressed confidence in Tether’s ongoing efforts to prove its legitimacy and financial health.
Ardoino also discussed Tether’s commitment to Bitcoin, stating that Tether was focused on using Bitcoin as a reserve for profits rather than stablecoin backing. The full interview with Ardoino will be published along with a series of clips on CryptoSlate’s X account.
Overall, Ardoino’s frank and open conversation provided insights into Tether’s battle with FUD and its dedication to transparency and financial stability. Through various challenges and attacks, Tether has proven its resilience and liquidity, establishing itself as a key player in the stablecoin market.
