cryptopotato.com
Following an unexpected change in leadership, Tether seems to be charting an ambitious course for USDT.
Despite facing substantial criticism regarding the perceived opacity of its reserve composition backing the stablecoin, with Paolo Ardoino taking over the role of CEO, Tether is actively working towards enhancing transparency.
Tether Plans for Transparency
Among other plans, Tether intends to start publishing data on its reserves in real time in 2024, according to Ardoino, who spoke with Bloomberg.
The latest development comes after Ardoino was promoted as the CEO of the company, which subsequently marked the transition of previous executive Jean-Louis van der Velde into an advisory role.
In its Q2 attestation signed by accounting firm BDO Italy, Tether revealed that its operational profits surpassed $1 billion for the second quarter. The stablecoin issuer’s filing also disclosed an excess of $3.3 billion in reserves with around $72.5 billion of exposure to US Treasuries. This included direct T-bill investments, repurchase agreements, and deposits in money market funds.
As reported earlier, Tether is one of the leading global purchasers of US Treasury bills. The exec had disclosed that USDT accumulated a substantial $72.5 billion in US Treasury bonds, propelling it to the 22nd position worldwide. In terms of Treasury holdings, the company has surpassed countries such as the United Arab Emirates, Mexico, Australia, and Spain.
Future Goals
Ardoino also told the outlet that his goals also include ramping up tech investment, talking to regulators, and expanding into renewable energy.
Tether had previously incurred a $42.5 million fine from the Commodity Futures Trading Commission (CFTC) in 2021, stemming from allegations that USDT was not completely backed during a significant portion of a 26-month period from 2016 to 2018.
Despite the regulatory pushback and the controversies surrounding its backing, USDT remains the top stablecoin in the market. In fact, its market cap spiked to $84 billion this week, representing a whopping 27% increase since the beginning of the year despite the lack of proper momentum in the broader crypto market.
Moreover, a recent study by Brevan Howard confirmed that USDT accounts for 75% of stablecoin transactions.