In its 2023 annual report, Tether USDT/USD disclosed $6.2 billion in profits. CEO Paolo Ardoino emphasized the importance of the industry shifting toward blockchain solutions with real-world applications.
What Happened: In a recent podcast with "The Wolf Of All Streets," Ardoino said Tether maintains 100% reserve-backed tokens, and said his aim is to make profits without risking customer assets and being greedy.
He said that Tether holds a $5.2-billion surplus in corporate reserves and countries such as Brazil, Venezuela, Vietnam and Nigeria have significant usage of USDT.
Ardoino said he believes Tether's market cap could potentially reach $200-$400 billion or even $1 trillion as more countries face issues with their national currencies. The market cap of USDT stands at $96.5 billion.
Crypto Rover tweeted Feb. 8, “The more Tether prints, the higher Bitcoin will go.”
The more #Tether prints,
— Crypto Rover (@rovercrc) February 8, 2024
The higher #Bitcoin will go! pic.twitter.com/0EUAeHEdg2
Why It Matters: Stablecoins have garnered support from prominent figures in the industry, including Cantor Fitzgerald CEO Howard Lutnick, who expressed strong confidence in Tether at the World Economic Forum in Davos.
Not everyone trusts stablecoins. New Zealand Central Banker Adrian Orr criticized stablecoins as "biggest misnomers" and "oxymorons," emphasizing that their value relies solely on the balance sheet of the entity issuing them.
Orr emphasized the stability of fiat currencies like the New Zealand dollar, backed by parliamentary authority and upheld by an independent central bank to ensure low, stable inflation.
U.S. Rep. Maxine Waters said last week that U.S. lawmakers are close to finalizing a stablecoin regulation bill after lengthy discussions with House Financial Services Committee Chair Patrick McHenry.
What’s Next: Tether aims to focus on serving users in developing countries and those seeking better payment solutions than traditional banks.
The company plans to invest in innovative financial technologies and areas such as renewable energy and peer-to-peer telecommunications.
Ardoino emphasized the importance of blockchain solutions with real-world usage, particularly in gaming and everyday payments, moving beyond meme coins and airdrops.
Photo via Shutterstock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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