Tether CEO Champions Emerging Markets to Retain Stablecoin Dominance
Recently, in Lugano Switzerland, the chief executive them, Paolo Ardoino, spoke at the Plan B Forum on how a focus on emerging markets has cemented USDT’s lead in the highly competitive landscape for stablecoins. Though other close rivals, like Circle and PayPal, are nipping at its heels, Ardoino says that the model of Tether, focusing on utility over elite adoption, will keep the company well ahead.
Tether’s Approach to Market Competition
With more stablecoins coming into the market, Tether has faced competition; however, the strong strategy of the company has continued to see it amass much profit. In the last two years alone, Them has accrued more than $12 billion, thanks in part to strategic investments into U.S. Treasury bills. According to Ardoino, the large reserves of the company still manage to be profitable and stable, even in variable interest rates.
Transparency and Building Trust via Audits
All these years, Them has fought its way through questions of reserves. While, according to Ardoino, “Tether is all about transparency with quarterly attestations and audits, the recent endorsement by BlackRock’s Larry Fink brought huge credence to the firm and washed away many of the concerns that were there in the market.
Tether’s Global Strategy: The Focus is on Emerging Markets
Its biggest markets, instead of being U.S. or European-centric, are places like Turkey, where for economic uncertainty, demand for a very stable stablecoin is high. According to Ardoino, the international team brings experience firsthand from these markets into shaping a product to meet real-world needs.
Profitability Through Real-World Demand
This focus on emerging markets has allowed them to tap into some fairly serious needs and grow consistently despite growing competition. As for the strategy of going after Western markets, Ardoino said: “I don’t need to sell my product to JP Morgan.” Rather, he pitches them as a solution for populations beset by economic volatility, and as such, guaranteed demand.
Sustaining Success in a Shifting Landscape
According to Ardoino, Tether’s model would remain intact even if the interest rates went down. He noted that, even at this time, Tether holds $100 billion in Treasury, which would yield billions to keep profitability going. With its strategic approach, Tether is bound to bear the shifting dynamics of the stablecoin market while staying true to its core mission for emerging economies.
