USDT Is 104% Backed, Tether CEO Says

As a seasoned crypto investor who has weathered numerous market storms and survived the 2017 ICO bubble, I find the recent confirmation by Tether CEO Paolo Ardoino that USDT is 104% backed to be a reassuring development. Having lost a significant portion of my portfolio in projects with less transparency than Tether, I can appreciate the importance of a stablecoin with robust backing and a commitment to safety.


In a recent interview with Fox Business, Tether CEO Paolo Ardoino confirmed that the USDT stablecoin is 104% backed. 

As a researcher, I’ve discovered an intriguing fact: The value of the assets (collateral) that the company holds exceeds substantially the overall circulation of the stablecoin.

According to Ardoino, maintaining the security of their stablecoin product is the topmost concern for the company.

According to data provided by CoinGecko, the market cap of USDT is currently approaching the $120 billion mark. 

In 2021, the company faced a penalty of $41 million from the Commodity Futures Trading Commission (CFTC) due to false claims regarding their reserves.

The company publishes attestations on a quarterly basis in order to shed light on its reserves. 

Previously, it was acknowledged that American financial institution Cantor Fitzgerald manages Tether’s Treasury bills. As mentioned by Ardoino, Cantor has a direct link with the Federal Reserve, suggesting they could make payments through this connection regardless of the situation. This company is in possession of an astounding $97 billion in government bonds.

Previously this year, Brad Garlinghouse, CEO of Ripple, caused a stir by implying that the U.S. government was targeting Tether. This remark, made not long after Rippe announced its own stablecoin, did not resonate positively with Ardoino. In response, Ardoino criticized Garlinghouse for spreading fear, uncertainty, and doubt (FUD), and emphasized his company’s collaboration with law enforcement agencies across the globe.

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2024-10-08 20:05