Latest news with #PaoloArdoino
Yahoo
2 days ago
- Business
- Yahoo
USDT Price Prediction - What could affect USDT's future price?
USDT price prediction remains stable near its $1 peg, though Tether USDt faces risks from regulatory changes, reserve management scrutiny, and rising competition. Its market dominance and strategic positioning continue to provide a layer of resilience. - Regulatory crackdowns could destabilize operations or demand - Reserve transparency remains critical for maintaining trust - Banking partnerships and institutional adoption may offset risks The GENIUS Act advancing in the U.S. Senate would mandate 100% reserve backing and federal oversight for large stablecoin issuers like Tether. While this could enhance credibility, compliance costs might pressure profitability. Globally, the EU's MiCA regulations and Thailand's approval of USDt for trading create a patchwork of requirements that could complicate cross-border liquidity. Tether's exposure to U.S. jurisdiction via the proposed 'Genius Stablecoin Act: UNCHAINED' introduces legal uncertainty, though CEO Paolo Ardoino's plans for a compliant institutional stablecoin suggest proactive adaptation. Tether holds $120B in U.S. Treasuries – more than Germany's national holdings. While this anchors stability, 80%+ exposure to government securities creates interest rate risk if the Fed cuts rates. Competitors like bank consortium stablecoins (JPMorgan, BofA) and CBDCs could erode Tether's 68% stablecoin market share, though its first-mover advantage and 75.7B USDT on Tron for low-cost transactions provide defensive moats. USDT price prediction depends on the stablecoin's ability to navigate regulatory landmines while maintaining reserve credibility and blockchain agility. Over the next 6–12 months, Tether's treasury-heavy strategy and shift toward institutional products will be tested against rising competition and mounting compliance pressures. USDT price prediction reflects mixed sentiment—bullish due to Tether USDt's market dominance and financial strength, yet tempered by persistent regulatory concerns. - Bullish: Record Treasury reserves ($120B) and Tron blockchain dominance (75.7B USDT). - Bearish: Regulatory scrutiny over transparency and potential deposit outflows from banks. - Neutral: Expansion into AI, telecom, and compliant stablecoins diversifies risk. Market sentiment leans cautiously bullish due to USDT's $120B U.S. Treasury reserves and 75.7B USDT minted on Tron (surpassing Ethereum), driven by lower fees and faster transactions. However, skepticism persists around audit transparency and regulatory risks, with the Federal Reserve warning stablecoins could destabilize banks by accelerating deposit outflows. Tron's dominance: 75.7B USDT now exists on Tron (vs. Ethereum), favored for cost efficiency. Analysts note this could shift blockchain competition dynamics. Regulatory pressure: U.S. senators are pushing the GENIUS Act to mandate Treasury-backed reserves for stablecoins, which Tether already fulfills. Diversification: Tether's ventures into AI, telecom, and gold-backed tokens (e.g., XAUt in Thailand) aim to reduce reliance on USDT. Paolo Ardoino (Tether CEO): Emphasizes transparency efforts (audit talks with Big Four firms) and plans for a compliant stablecoin targeting institutions. U.S. lawmakers: Bipartisan support for the GENIUS Act reflects urgency to regulate stablecoins, potentially legitimizing USDT but imposing stricter oversight. Banks: Fifth Third Bancorp and Russian banks now integrate USDT for cross-border payments and investment products, signaling institutional adoption. USDT price prediction is closely tied to the stablecoin's dominance, which hinges on Treasury-backed stability and Tron's efficiency. However, its long-term resilience will depend on regulatory clarity and successful diversification into compliant products. Will the GENIUS Act's passage solidify USDT's legitimacy—or expose new vulnerabilities? To get the latest update on Tether, visit our USDT currency page. Content created: 30th May 2025 Disclaimer: Content generated by CMC AI. CMC AI can make mistakes, please DYOR. Not financial advice. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
3 days ago
- Business
- Forbes
Stablecoin Giant Tether To Invest Billions In Bitcoin Mining
Bitcoin mining on computer screen. Digital crypto currency, cyber money and digital banking concept ... More 3d illustration with glitch effect. Tether will invest billions of dollars in bitcoin mining over the next few years after chief executive Paolo Ardoino told the 'Bitcoin 2025' conference the company intends to surpass every operator by hashrate. On the Las Vegas main stage Thursday, Ardoino remarked that Tether will soon become the "largest bitcoin miner in the world." He went on to explain that profits from the $120 billion USDT reserve will continue to be reinvested 'heavily' into bitcoin. The company currently holds over 100,000 BTC on its balance sheet, acquired using profits not its stablecoin reserves. Back in 2023 Tether committed an initial $500 million build-out across Uruguay, Paraguay and El Salvador, a program that includes new substations and minority stakes in established farms. The round was the first tranche of a 'multi-billion' reinvestment pipeline, which has since continued. Engineering plans target 450 megawatts of installed capacity by the fourth quarter of 2025, enough to push the firm toward one percent of global hashrate. The war chest behind the strategy is substantial as public filings show bitcoin worth roughly $10.5 billion at current prices, and the issuer has pledged to continue to direct up to 15 percent of net realized operating profit toward additional coin purchases and hardware. Locating farms beside hydro in Paraguay, wind in Uruguay and geothermal in El Salvador allows Tether to pitch renewable generation to regulators tracking MiCA-style sustainability metrics while reducing power-purchase risk. The firm has also diversified through investments in other bitcoin mining companies such as its $100 million investment into Bitdeer. Internal projections put Tether's goal above its main competitors such as Marathon Digital's reported 25 EH/s and Riot Platforms' 21 EH/s, shifting the competitive map for public miners that rely on capital markets rather than cash reserves. Ardoino appears confident in this vision, he told the Vegas bitcoin crowd that 'by the end of this year, we may become the largest Bitcoin mining company in the world - surpassing all listed companies.' He confirmed Tether's rationale for bitcoin mining is routed in its desire to participate actively in the network. The stablecoin issuer, 'born from Bitcoin,' believes the top digital asset is 'perfect' and that gold is now the 'primitive bitcoin.' Ardoino opined, bitcoin is not 'digital gold' because gold 'does not compete with bitcoin, it competes with fiat currency.' Still, execution questions remain within Tether's strategy as ASIC supply is tight and power-purchase agreements in Latin America can be politically fragile. However, auditors won't have to consider depreciating miners sitting alongside U.S. Treasuries in the reserve mix as Tether does not use bitcoin to protect the USDT peg, it invests stablecoin profits into bitcoin.
Arabian Post
3 days ago
- Business
- Arabian Post
Tether's USDT Sees Unprecedented Growth in Market Cap, Transfers, and User Adoption
Tether's USDT stablecoin has experienced significant expansion over the past year, with its market capitalisation rising by 37% to surpass $150 billion. Daily transfer volumes have increased by 90%, and the estimated user base has grown by 51%, according to CEO Paolo Ardoino. These figures underscore USDT's dominant position in the $238 billion stablecoin market, where it accounts for over 60% of the total market share. The surge in daily transfer volumes, now exceeding $90 billion, reflects heightened activity across both decentralised finance platforms and centralised exchanges. The user base has expanded notably, with an estimated 46 million new wallets added in the first quarter of 2025 alone. This growth is attributed to increased adoption among retail and institutional investors seeking stable, dollar-pegged assets for trading and cross-border transactions. ADVERTISEMENT Tether's strategic initiatives have played a role in this expansion. The company's acquisition of a 70% stake in Latin American agriculture and energy firm Adecoagro aims to integrate stablecoins into commodity trading, extending USDT's utility beyond digital assets. This move aligns with Tether's broader strategy to embed stablecoins into real-world financial ecosystems. In terms of reserves, Tether has reported holding over $120 billion in U.S. Treasuries, positioning it among the largest holders globally. The company also holds more than 100,000 bitcoins and over 50 tons of gold, reinforcing its commitment to backing USDT with substantial assets. Regulatory developments have also influenced Tether's operations. The U.S. Senate's advancement of the GENIUS Act, which introduces stricter oversight for stablecoin issuers, has prompted Tether to enhance its compliance measures. The act includes provisions for audits, prohibitions on yield offerings, and strengthened anti-money-laundering protocols.
Axios
4 days ago
- 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.
Forbes
5 days ago
- Business
- Forbes
Tether Goes All In On AI And Bitcoin To Build A Decentralized Future
Tether (USDT) introduces QVAC, enabling peer-to-peer intelligence (Photo Illustration by ... More Costfoto/NurPhoto) The pace of technological change has never felt more relentless. Yet for much of the world, innovation remains a distant promise. Paolo Ardoino, CEO of Tether, says the convergence of Bitcoin and AI may finally change that by putting power back in the hands of people, not platforms. Tether, the company behind USDT, the world's largest company in the digital asset industry, is now venturing into open-source artificial intelligence and decentralized infrastructure. QuantumVerse Automatic Computer promises to bring AI directly to anyone. It is usable on cheap hardware, without the cloud, and with privacy as a core feature. QVAC, announced on May 14, is a privacy-preserving, decentralized AI platform that runs entirely on local devices, including low-end smartphones. The idea is both radical and refreshingly simple: intelligence that belongs to the user, not to a corporation or a data center. Unlike OpenAI or Anthropic, which rely on massive cloud compute infrastructure, QVAC operates without centralized servers. It's built to run on commodity GPUs, making it usable in remote or resource-constrained environments. Ardoino said QVAC is built with three main goals in mind. It aims to protect user privacy, work in any environment, including offline settings, and give people more innovative tools they can fully control instead of relying on centralized companies. Tether plans to launch QVAC later this year, with a special emphasis on universities and small businesses. Where QVAC becomes truly novel is in its agent framework. Each QVAC AI instance will have a non-custodial crypto wallet, allowing it to receive funds, act on instructions, and negotiate transactions autonomously. This could open the door to a new class of autonomous economic actors, capable of operating peer-to-peer across borders, currencies, and regulatory frameworks. Unlike today's AI assistants, which are primarily passive, QVAC agents are designed to make decisions and even interact with other agents to resolve tasks. The launch of QVAC inevitably invites comparisons to Bittensor, another decentralized AI protocol that is gaining traction. But Ardoino insists the two projects have fundamentally different goals. Ardoino explained that while Bittensor focuses on incentivizing model training and inference, QVAC centers on the agents themselves by equipping them with wallets, defined purposes, and the ability to communicate peer to peer. The approach, he noted, is more bottom up and built for resilience. While Bittensor incentivizes developers to train useful models, QVAC takes a different approach by enabling localized intelligence networks designed to function independently. Bittensor has gained traction among researchers and crypto-native developers, whereas QVAC is targeting broader adoption among real-world users, particularly in emerging markets. QVAC isn't an isolated initiative. It's a core pillar of Twenty One, a new Bitcoin-native financial company founded by Tether, Strike CEO Jack Mallers, and SoftBank. Launching with 42,000 bitcoin, Twenty One aims to build an entirely new financial ecosystem, one built from the first principles of transparency, decentralization, and censorship resistance. Ardoino described Bitcoin as peer-to-peer cash and QVAC as peer-to-peer intelligence, emphasizing that together, they lay the groundwork for a parallel system designed to serve the broader global population. For years, Tether has kept a relatively low public profile despite operating the largest stablecoin in the world. That posture is changing as the company approaches the global AI stage. Ardoino acknowledged the importance of building trust, noting that QVAC is designed to be user-controlled rather than centralized. He also shared that Tether is collaborating with one of the 'Big Four' accounting firms to provide full transparency. Tether's role is to provide resilience and quality engineering, the system's base layer that others will expand upon. The company has no plans to charge licensing fees or gate access. If it succeeds, QVAC could become the leader in AI by being open, portable, and impossible to kill. Critics of Bitcoin treasury strategies, including venture capital investor Nic Carter, have warned that companies hoarding BTC will inevitably sell under stress. Ardoino acknowledged the risk but emphasized that Twenty One is approaching things differently. Ardoino emphasized the team's strength, calling Mallers an ideal leader for a Bitcoin-focused company and highlighting Tether's and SoftBank's complementary roles in the venture. Tether is no longer just shaping the future of money. It's building the infrastructure for decentralized intelligence and sovereign technology powered by Bitcoin and AI. With QVAC, Twenty One, and a bold vision rooted in open access, the company is setting the stage for a more resilient, user-controlled digital world. As the global race for AI dominance accelerates, Tether is positioning itself not just as a competitor but as a catalyst for a more equitable future.
