Crypto news: Tether plans to double its team by 2025, focusing on compliance and finance, to efficiently manage the 118 billion dollars of assets backing the USDT stablecoin.
Let’s see all the details below.
The stablecoin issuer Tether aims to reach new crypto milestones: team expansion
As anticipated, Tether, the issuer of the stablecoin USDT, has recently unveiled ambitious plans to significantly expand its team.
In an interview with Bloomberg, the CEO Paolo Ardoino announced the goal of doubling the number of employees, bringing them to 200.
This expansion will be primarily focused on the compliance and finance departments, with the goal of improving the management of 115.5 billion dollars in USDT.
Ardoino emphasized the importance of automated tools to monitor and manage potential legal activities in the secondary market related to USDT.
Before the interview, Ardoino had posted a cryptic message on the social media platform X, containing the number “115”. This triggered speculations among users, with many thinking it was a prediction for the price of Bitcoin.
However, the number represented the current market capitalization of USDT, which reached 115.5 billion dollars, confirming Tether’s position as the largest stablecoin on the market.
Despite the regulatory challenges and the criticisms received, Tether has shown remarkable financial growth.
In its report of July 31, 2024, the company reported a net profit of 5.2 billion dollars in the first half of the year, with a profit of 1.3 billion in the second quarter alone.
Furthermore, Tether has accumulated an excess reserve of 5.33 billion dollars, demonstrating a strong commitment to financial stability and the protection of its vast user base.
Ardoino also announced two major investments: one in the field of artificial intelligence with Northern Data Group and another in the biotechnology sector with Blackrock Neurotech.
Emphasizing therefore Tether’s intent to diversify and innovate further in the field of technology.
Tether doubles down on investment in Bitcoin, dismisses Ethereum as an option
The CEO of Tether, Paolo Ardoino, recently stated that he prefers Bitcoin as the main asset for the company’s investments.
Rejecting the idea of allocating funds on Ethereum, despite its position as the second cryptocurrency by market capitalization.
Ardoino has motivated this choice by emphasizing the immutability of Bitcoin and its supply limited to 21 million coins, characteristics that, according to him, make it a more secure and valuable long-term investment option.
In May 2024, Tether decided to allocate 15% of its profits in Bitcoin, a move that reflects Ardoino’s confidence in the growth potential of the cryptocurrency.
This investment was made through Tether’s investment arm, with the goal of diversifying the company’s reserves and leveraging Bitcoin as a stable store of value in the long term.
Ardoino has harshly criticized Ethereum, especially after the anticipated Merge update, highlighting its inability to maintain a coherent narrative and to compete with the stability of Bitcoin.
He also pointed out the decline in Ethereum’s performance compared to Bitcoin in recent years: from the peak of 0.088 in December 2021, the ETH/BTC pair has fallen by 45%.
Despite the rise in May due to the approval of various spot ETFs, Ethereum was unable to maintain the positive momentum, with inflow volumes remaining disappointing.
This disparity in performance further consolidates Ardoino’s preference for Bitcoin as a pillar of Tether’s strategic investment.