300 Million People Trust Tether’s USDT, Says CEO Ardoino

Table of Contents

Key Points

Over 300 million people globally use USDT as a digital currency in emerging markets.
Tether is among the top three global purchasers of short-term US Treasury Bills.
CEO Paolo Ardoino highlights USDT’s role in boosting demand for the US dollar in emerging nations.
Tether holds about $90.87 billion in US Treasury securities as of March 2024.

Financial Inclusion and Efficiency

USDT, Tether’s dollar-backed stablecoin, plays a crucial role in improving financial inclusion and efficiency, especially in underdeveloped regions. By providing an alternative to traditional banking systems, USDT offers essential financial services to the underbanked, who are often excluded from conventional banking and suffer from high inflation and rapid currency devaluation.

Paolo Ardoino, CEO of Tether, stated, “Over 300 million individuals worldwide utilize USDT as their digital currency, giving entire underdeveloped areas a vital resource.” He emphasized that these people are underserved by the banking industry, mostly remaining unbanked and subjected to severe economic challenges.

Ardoino’s comments came in response to a report highlighting how dollar-backed stablecoins, like USDT, support US public debt demand. This widespread use of USDT underlines its significance in stabilizing financial conditions in emerging markets.

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— ETHNews (@ETHNews_com) June 16, 2024

Global Financial System Impact

If Tether were a country, it would surpass nations like Indonesia, Pakistan, and Nigeria in terms of economic impact due to the widespread adoption of USDT. This extensive usage underscores USDT’s significant role in the global financial system.

Ardoino noted that Tether is among the top 20 overall buyers and the top three global purchasers of short-term US Treasury bills. This highlights Tether’s growing influence in the financial sector and the increasing integration of virtual assets with traditional financial systems.

As of March 31, 2024, Tether’s Q1 attestation report revealed that the company holds approximately $90.87 billion in US Treasury securities. These holdings include both direct and indirect ownership of US Treasury securities through overnight reverse-repurchase agreements and direct investments via money market funds.

With a market value exceeding $112 billion, Tether’s USDT is the most popular stablecoin, dominating the market with nearly 70% of the trading volume, according to CoinMarketCap. This dominance even surpasses Bitcoin, showcasing the critical role of digital assets in modern finance.

Furthermore, research from Chainalysis indicates a steady increase in the global market for stablecoins like USDT, particularly in developing countries such as Nigeria, Turkey, Thailand, and Brazil. Despite its prominence, Tether remains under regulatory scrutiny.

Decentralization and Bitcoin

Previously, Ardoino highlighted Bitcoin’s unique decentralized nature among more than 14,000 cryptocurrencies, emphasizing its distinct advantages and contributions to the financial sector. This perspective further reinforces the unique position of Tether and its significant benefits.

In a related note, Ripple CEO Brad Garlinghouse recently speculated without evidence that the US government might target Tether, reflecting ongoing regulatory challenges faced by stablecoins.

Nitesh

I work with brands that operate with a healthy dose of impatience to scale fast, connect with the culture, and steal back attention from their competitors.