TL;DR
- As Paolo Ardoino is appointed as the new CEO of Tether, the stablecoin issuer will start providing real-time reserve data for USDT.
- Tether had a $3.3 billion excess in reserves at the end of Q2, scoring a whopping $850M in profit.
Tether Will Start Offering Live Reserves Data as of 2024
As reported by Bloomberg, Tether plans to release real-time data concerning the reserves supporting it in 2024.
In its most recent quarterly attestation, Tether revealed a surplus of $3.3 billion in reserves.
This surplus was achieved by converting its previously controversial commercial paper holdings into U.S. Treasuries, which amounted to $72.5 billion.
The company has also had a very successful first half of the year. In the first quarter of this year, Tether made a profit of $1.48B; in the second quarter, it made $850M.
By the end of the second quarter, Tether had $86.5B in assets, almost $6B more than the total USDT in circulation.
More than that, the company has invested some of its profits and assets into the industry. As of September, Tether is among the companies that invested in Bitcoin mining.
Paolo Ardoino Steps Up As The New CEO of Tether
Tether has appointed Paolo Ardoino as its new CEO on October 13th. The former CEO, Jean-Louis van der Velde, will transition into an advisory role at Tether.
Van der Velde will continue to serve as the CEO of Bitfinex. At the same time, Ardoino will maintain his position as the CTO at both Bitfinex and Holepunch.
Ardoino took on the role of Tether’s CTO in 2017, having joined Bitfinex three years earlier.
During his tenure, Tether’s market capitalization has surged from under $100 million to an impressive $83.5 billion, driven by significant growth that began in 2020.
Tether Controversy and FUD
One of the longest-running campaigns of FUD in the crypto community is aimed at Tether and its stablecoin, USDT.
However, the skepticists have been proven wrong. In the last two years, many big players in the crypto space have faced problems and even collapsed.
Companies like Celsius, FTX, 3AC, Voyager, and Genesis have all had their share of troubles.
Meanwhile, Tether has remained steady, even showing profits and fueling growth. The introduction of the live reserves will further cement the position of Tether and USDT on the market.
In the long run, USDT will probably become the most used form of the digital dollar. People can keep savings or currency reserves in Tether without fearing losing it.
The company will strengthen its position in the market, showing that crypto companies can have a sustainable business model.
Do you think Tether will become the most important crypto company in the future?
Suchet Salvesen
Suchet is a Norwegian economist, entrepreneur, and investor, serving as the CFO and COO of Brainfund. With over a decade of experience in global expansion, venture capital, and emerging technologies, he earned his MBA from the NMBU School of Business & Economics. He held dual bachelor's degrees from the University of South-Eastern Norway. His career spans roles at NextToMe, Get, and Conax before joining Everipedia, now Brainfund, in 2017.
