Latest news with #Ardoino
Arabian Post
a day ago
- Business
- Arabian Post
Tether Strengthens Global Footprint as U.S. Tightens Crypto Regulations
Tether, the issuer of the world's most widely used stablecoin USDT, is intensifying its focus on emerging markets across Asia and Latin America, as U.S. lawmakers advance stringent legislation that could reshape the digital asset landscape. From January 2024 to February 2025, USDT accounted for between 62% and 91% of global stablecoin payment volumes, with Asia and Latin America leading adoption. Singapore, Hong Kong, and Japan collectively represented 36.3% of global stablecoin traffic, while the United States trailed at 18.7%. Tether CEO Paolo Ardoino reaffirmed the company's commitment to these regions, stating that the firm will continue prioritizing emerging markets outside the U.S., despite regulatory progress and a pro-crypto administration. Ardoino emphasized that the company sees more opportunity abroad than under strict upcoming U.S. laws. ADVERTISEMENT In a strategic move to deepen its presence in Latin America, Tether announced a significant investment in Orionx, a Chile-based cryptocurrency exchange and financial infrastructure firm. Orionx operates across Chile, Peru, Colombia, and Mexico, offering services such as cross-border payments, remittances, and treasury solutions. The investment aims to enhance Orionx's technological capabilities and scale stablecoin-powered infrastructure throughout the region. Ardoino highlighted the importance of this partnership, noting that the investment supports a high-impact company and advances Tether's broader vision of making stablecoin-powered financial tools accessible to underserved communities across Latin America. The surge in stablecoin adoption in Latin America is attributed to economic instability and high inflation rates in countries like Argentina and Brazil. Stablecoins offer a more stable store of value and a means to conduct transactions without relying on volatile local currencies. Tether's USDT has become a preferred option for everyday needs such as saving, sending money to family, and conducting business transactions. Meanwhile, in the United States, the regulatory landscape for stablecoins is undergoing significant changes. The Senate is advancing the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which introduces stricter regulations on stablecoin issuers, focusing on consumer protection, national security, and financial system integrity. Key provisions include prohibiting yield offerings by stablecoins, mandating audits, and enhancing anti-money laundering protocols. Despite the U.S. administration's pro-crypto stance, with President Donald Trump and Vice President JD Vance advocating for the industry, the GENIUS Act reflects a bipartisan effort to establish a robust regulatory framework. The act has garnered support in the Senate, passing a motion to proceed with a 69-31 vote. However, the legislation has sparked debate among lawmakers. Some Democrats express concerns over potential conflicts of interest due to the Trump family's direct involvement in crypto ventures. Senators Chris Murphy and Elizabeth Warren have opposed the bill on ethical grounds, while others like Senators Cory Booker and Kirsten Gillibrand support it, emphasizing the need for consumer protection and clearer crypto regulations.
Axios
28-05-2025
- Business
- Axios
Tether acquisition signals move into commodities
While everyone else in the stablecoin industry has its eyes on big banks and hedge funds, the issuer of the world's largest stablecoin, tether, is watching a much older business: commodities. Why it matters: Stablecoins are the biggest story in crypto policy right now — and may well be the biggest story in finance before long. Driving the news: In a move that may seem unexpected for a company primarily known as a liquidity instrument for trading bitcoin and its progeny, Tether recently acquired a 70% stake in Adecoagro, an agriculture and energy company operating in Latin America. Adecoagro's been in business for more than 20 years, and generated around $1.5 billion in revenue last year from farming food crops and producing renewable energy from sugarcane. It calls itself one of the largest owners of productive farmland in South America. Between the lines: "The bulk of our investments are companies that are furthering and expanding our distribution network," Tether CEO Paolo Ardoino tells Axios. That's distribution of tether, or USDT, the company's massive dollar-backed stablecoin. Many of those investments — around 90 made over the last several years — have been directed toward expanding street-level use of USDT by retail traders, but Tether's eyeing another giant market now, as the Adecoagro deal illuminates, Ardoino says. The big picture: "The biggest reason in the next five years of growth for USDT will be commodity trading," Ardoino says. "In my opinion, commodity trading and all the international deals for commodity run on stablecoins," he says. Commodity traders tell them about the pain of using traditional finance. In November, Tether announced that USDT had been used in financing a trade of crude oil worth $45 million. The advantage of this, Ardoino explains, is that ships won't start loading oil until the wire clears. That can take days with payments as we know them, but USDT settles nearly instantly. State of play: Tether first started talking about trade finance late last year, but having an actual commodities business gives it new leverage. What's next: With Tether now steering it, Adecoagro will be looking to use stablecoins more as it sells rice, bio-ethanol and other agriculture products throughout its network. The bottom line: "As of today, the adoption of USDT and the growth of USDT has been done very organically. In the number of hundreds of millions of users," Ardoino says. That got the stablecoin to a $150 billion market cap.
Business Times
25-05-2025
- Business
- Business Times
Tether focuses elsewhere while US seeks to regulate stablecoins
[CHICAGO] While Congress is considering bills that would help integrate stablecoins more into mainstream finance, the largest issuer of the digital tokens says it will continue to focus on serving markets besides the US. On Monday (May 19), an industry-backed regulatory bill known as the Genius Act made its way through the Senate. The House Financial Services Committee has approved its own stablecoin measure, but it has yet to pass the chamber. 'It is important for us to see how the Genius Act is distinguishing between foreign issuers and domestic issuers,' Paolo Ardoino, chief executive officer of Tether Holdings, said on Friday. 'For us, the main interest will remain outside of the US.' El-Salvador-based Tether's USDT stablecoin accounts for more than 60 per cent of the stablecoin market, with 420 million users across emerging markets. The company, which has had several clashes with state and federal authorities over the years, has been increasingly involved in the US amid a friendlier regulatory environment under President Donald Trump's pro-crypto administration. Ardoino made his first visit to the US in March and stopped off in Washington while Trump held his inaugural digital-asset summit. 'We are looking at the Genius Act in a way that will allow us to be compliant,' Ardoino said. 'We can be compliant while still having a strong focus on foreign markets.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The stablecoin bills in the House and Senate require the tokens – usually pegged to the US dollar or another currency – to be fully backed by cash and 'safe assets' such as short-term Treasuries and make issuers subject to the Bank Secrecy Act and to anti-money-laundering regulations. In addition, both bills would allow regulators to sign off on foreign issuers such as Tether if they're subject to 'comparable' rules overseas. However, the question remains on how strictly the law will deal with those that don't comply. 'Stablecoins are surely important in the United States, but it's true that in the United States you have tons of ways to pay each other with Zelle, PayPal, debit cards, credit cards, cash, you name it,' Ardoino said. While Tether does not currently service US customers, most of the private company's reserve is comprised of assets that would be compliant with the proposed US legislation. The firm also backs its token with assets that would not be allowed, such as Bitcoin and secured loans. Because of its size, Tether would be regulated at the federal level if it chose to apply for a US license under such rules. In 2021, Tether settled with US authorities over allegations that it lied about its reserves. Today, those reserves are managed by Cantor Fitzgerald & Co, which was until recently led by Trump's Secretary of Commerce Howard Lutnick. Ardoino has said the company may issue a new stablecoin that will adhere to the requirements, making it more attractive to institutional investors. The more supportive regulatory environment in the US has also pushed Tether to progress towards delivering an audit of its reserves by a Big Four accounting firm, which Ardoino also said that Tether was still in discussions with. Currently, Tether releases quarterly attestations which are signed off by BDO Italia. 'They are going through a phase of adjustment, but a full audit is our priority,' Ardoino said. Stablecoins have become crucial to the functioning of crypto markets, with about US$243 billion of them in circulation in May 2025. On Friday, The Wall Street Journal reported that a consortium of major banks, including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, are exploring whether to jointly issue a stablecoin. 'We are not worried about the competitors coming from big banks, because they will look at the Western world,' Ardoino said. 'Our customer base are the three billion people unbanked that are not touching the banking system.' BLOOMBERG
Yahoo
05-05-2025
- Business
- Yahoo
‘Like Spitting on a Fire': Tether CEO Slams EU Deposit Protections Amid Bank Failure Warnings
Tether CEO Paolo Ardoino is sounding the alarm on Europe's financial system, warning that a wave of bank failures could hit the continent in the near future due to the intersection of risky lending and new cryptocurrency rules. Ardoino, during an interview with the Less Noise More Signal podcast, took aim at the European Union's regulatory framework for stablecoins, which he said pushes companies like Tether to keep the bulk of their reserves—up to 60%—in uninsured bank deposits. In his scenario, that could mean holding 6 billion euros of a 10 billion euros-pegged stablecoin in small banks with minimal protection. 'The bank insurance in Europe is only 100,000 euros,' he said. 'If you have 1 billion euros, that's like spitting on a fire.' European banks, like every other bank, operate on a fractional reserve, Ardoino added. 'They can lend out 90% of it to people that want to buy a house, start a business, and all of that.' In his hypothetical 6 billion euros scenario, this would mean 5.4 billion euros would be lent out by the bank. He likened the setup to the lead-up to Silicon Valley Bank's collapse in 2023, when a flood of redemptions exposed the mismatch between deposits and actual liquidity. Ardoino warned that European banks operate under similar fractional reserve models that could unravel under pressure. A 20% redemption event, he estimated, could leave banks short billions. "As a stablecoin issuer, you go bankrupt — not because of you, but because of the bank. So the bank goes bankrupt and you go bankrupt, and the government would say, 'Told you so, stablecoins are very dangerous,' Ardoino said. Regulations in Europe, he added, are made to try to help banks in the bloc and bring them liquidity, but this created 'huge systemic risk.' The largest banks in Europe, like UBS, would 'not bank stablecoins,' pushing stablecoin issuers to use smaller banks, furthering the risk. The comments come as Tether plans to launch a U.S.-based stablecoin product, and as the stablecoin issuer keeps investing in various projects outside of the ecosystem, having recently raised its stake in Latin American producer Adecoagro. Sign in to access your portfolio
Yahoo
03-05-2025
- Business
- Yahoo
Tether's U.S.-Focused Stablecoin Could Launch Later This Year, CEO Paolo Ardoino Says
Tether, the company behind the $148 billion stablecoin USDT, plans to launch its U.S.-focused stablecoin later this year or early 2026 depending on the nation's stablecoin legislation, CEO Paolo Ardoino told CNBC in an interview. "Realistically, it depends on the timeline of the final legislation on stablecoins, but we are looking at [launching the product] by the end of this year or early next year at the fastest,' he said. Ardoino said that the firm's flagship USDT token is catered towards users in emerging markets with limited access to U.S. dollars, and the new offering would be a different product. "In the U.S., you have to create a payment product, something that could be used by institutions, something that can be used as a competitor of PayPal's CashApp," he said in the interview. "That is what we are aiming for." Tether's U.S.-based stablecoin plans highlight the firm's growing presence in the U.S. as Donald Trump's return to the White House allayed regulatory pressure on crypto firms. Ardoino toured the U.S. earlier this year, giving interviews and speaking at events including at a conference by Wall Street investment bank Cantor Fitzgerald. Cantor manages Tether's over $100 billion U.S. Treasury holdings, while former CEO Howard Lutnick now serves as Secretary of Commerce in the Trump administration. Competition is also increasing in the stablecoin market as U.S. federal legislative efforts to regulate stablecoins advance. It's a big opportunity: Citi projected that the sector could grow to a multi-trillion dollar by the end of the firm Circle, issuer of the $62 billion USDC token, last month announced plans of creating a cross-border payments and remittances network.
