In the booming cryptocurrency economy, Tether stands out as the official issuer of the USDT stablecoin, which is both used and criticised. Paolo Ardoino, the director who is highly regarded by regulators, is at the helm of the company, which has just confirmed its hegemony in the digital stability market by posting a profit of $6.2 billion for the past year.
The year 2023 saw the stablecoin market go through its ups and downs, notably with the demise of one of its leaders, the BUSD, following a regulatory offensive. Meanwhile, Tether's USDT has absorbed the market share left vacant by its rivals, surging 40% and crossing the $100 billion mark. Recently appointed CEO Paolo Ardoino predicts an exciting 2024 for Tether, expanding beyond USDT into areas such as AI and Bitcoin mining.
The market has been particularly buoyant for USDT, which has managed to capture almost all of the market share relinquished by its rivals over the past year, recording an increase of around 40%. This growth propelled its market share to over 72%, enabling its quantity in circulation to exceed 100 billion dollars for the first time. Against this favourable backdrop, Paolo Ardoino, Tether's recently appointed CEO, expresses his optimism for 2024, anticipating the launch of new projects and products. He highlights Tether's evolution beyond its flagship product, USDT, by becoming a major player in the development of key infrastructures and investment in various fields such as artificial intelligence, P2P telecommunications, Bitcoin mining, and renewable energy production.
To consolidate its favourable momentum, Tether recently underwent an audit conducted by independent entity BDO. The report assessed the company's Bitcoin reserves, which totalled $2.8 billion. The audit also examined the funds that Tether holds to maintain its 1:1 hedge ratio between the USDT and the dollar, an aspect on which Paolo Ardoino, expressing his satisfaction, highlights a 90% hedge ratio.
"Cash and cash equivalents now cover 90% of all tokens issued, the highest percentage in recent years". - Paolo Ardoino
Tether's CEO implicitly acknowledges that cash coverage for USDT issued was below 90% in previous years. However, this detail pales in comparison with the remarkable $6.2 billion profit recorded in 2023. Tether thus confirms its status as a major player in the crypto-currency market, while Paolo Ardoino, its leader, plans to enter into a dialogue with US regulators in 2024, a move that could influence its dominant position.
