Tether CEO Confident in USDT’s Future Despite Regulatory Challenges and Market Competition

Tether CEO Paolo Ardoino has expressed confidence in the future of USDT despite facing regulatory challenges and growing competition in the stablecoin market.

In recent comments made at the PlanB Forum in El Salvador and later shared on social media platform X, Ardoino downplayed concerns about Tether’s competition, focusing instead on the company’s long-standing success and its extensive distribution network.

Tether is currently under regulatory scrutiny in Europe due to the EU’s new Markets in Crypto-Assets (MiCA) regulations, which have prompted some major exchanges, such as Crypto.com and Kraken, to delist USDT from their platforms in the region. This has resulted in a decline in Tether’s market value, which has recently fallen to a two-year low. Despite these challenges, Ardoino remains unfazed by the competition from newer stablecoins.

Tether, he argues, stands apart from competitors by relying on a unique distribution model. Ardoino emphasized the vast network Tether has built over the past decade, which includes digital and physical partnerships spanning developing countries. These partnerships have enabled USDT to reach hundreds of millions of users in areas with limited access to traditional banking services.

“Tether has been building for the last 10 years one of the widest digital and physical distribution networks in the history of humanity,” Ardoino stated. He contrasted Tether’s model with that of its competitors, who often rely on investor capital and incentivize banks to hold their stablecoins on their balance sheets. Ardoino pointed to Tether’s partnerships, including kiosks and digital platforms, as a major factor behind its success in reaching underserved markets.

In addition, Ardoino mentioned Tether’s commitment to supporting the U.S. economy by purchasing U.S. Treasuries, reinforcing the stability and dominance of the U.S. dollar as the world’s primary reserve currency.

Despite the decline in market value and regulatory hurdles, Ardoino remains confident in Tether’s ability to weather the challenges ahead, concluding, “So no, I’m not worried.”