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In light of an unforeseen leadership shift, Tether appears to be pursuing an ambitious strategy for USDT.
Despite encountering significant criticism regarding the perceived lack of clarity surrounding its reserve composition that supports the stablecoin, Tether is actively striving to improve transparency under the new CEO, Paolo Ardoino.
Tether’s Transparency Initiatives
Among its various initiatives, Tether plans to begin releasing real-time data on its reserves in 2024, as stated by Ardoino in an interview with Bloomberg.
This recent development follows Ardoino’s elevation to the CEO position, which also saw the previous executive, Jean-Louis van der Velde, transition into an advisory capacity.
In its Q2 attestation, verified by accounting firm BDO Italy, Tether disclosed that its operational profits exceeded $1 billion for the second quarter. The stablecoin issuer’s report also indicated over $3.3 billion in reserves, with approximately $72.5 billion in exposure to US Treasuries. This figure encompasses direct T-bill investments, repurchase agreements, and deposits in money market funds.
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As previously reported, Tether ranks among the foremost global buyers of US Treasury bills. The executive revealed that USDT has amassed a significant $72.5 billion in US Treasury bonds, placing it 22nd globally. In terms of Treasury holdings, the company has outpaced nations such as the United Arab Emirates, Mexico, Australia, and Spain.
Future Objectives
Ardoino also mentioned to the outlet that his objectives include increasing technology investments, engaging with regulators, and expanding into renewable energy.
Tether had previously faced a $42.5 million penalty from the Commodity Futures Trading Commission (CFTC) in 2021, arising from allegations that USDT was not fully backed during a considerable portion of a 26-month timeframe from 2016 to 2018.
Notwithstanding the regulatory challenges and the controversies regarding its backing, USDT continues to be the leading stablecoin in the market. In fact, its market capitalization surged to $84 billion this week, reflecting an impressive 27% increase since the start of the year, despite the absence of significant momentum in the broader crypto market.
Additionally, a recent analysis by Brevan Howard confirmed that USDT constitutes 75% of stablecoin transactions.
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