For the better part of a decade, Tether has been one of the most dominant companies in the cryptocurrency space alongside Binance and Coinbase, but it has often been overlooked. This is largely by design, as the company and its executives prefer to exist in the shadows, even as they attract billions from Tether’s USDT stablecoin, the go-to currency of the cryptocurrency economy. Body. But that’s about to change, as Tether, which now has a staggering $105 billion in reserves, and CEO Paolo Ardoino are trying to bring the company into the financial mainstream.
I chatted with Ardoino this week, and he explained that Tether is expanding far beyond its roots as an in-house currency for offshore crypto speculators. He said USDT is a popular form of currency, especially in regions such as Latin America, where ordinary people don’t trust governments to maintain stable currencies.
Ardoino expects the first three months of 2024 to be the most profitable quarter ever, and it’s clear that Tether is working on that amount, more than it earned in the final quarter of last year. It will exceed $3 billion. A $105 billion market cap means Tether is more dominant than ever in the stablecoin market, using its excess cash to invest heavily in AI and play games in Washington, D.C. I am using it. In recent months, Tether has become the third-largest cryptocurrency lobbyist behind Coinbase and industry group the Blockchain Association.
Aiming to break into the mainstream, Tether will have to overcome long-standing reputation issues, but the company and its executives have been cast as James Bond-esque villains in the cryptocurrency book Number Go Up. (SEC Chairman Gary, who hates cryptocurrencies, published this issue). Mr. Gensler prefers to express himself in video speeches). I asked Mr. Ardoino what he thought of the book, which depicts Tether as a favorite tool of Asian criminal organizations that enslave people to carry out brutal “pig butchering” scams. Tether’s CEO paused, took a breath, and finally said: “This book has no intelligence,” he said, adding that the book judges cryptocurrencies entirely in terms of the bad people who use them, and does not explain the people it helps. Ardoino added that Tether has been a strong supporter of law enforcement’s efforts to fight fraud, and was instrumental in solving a large-scale $80 million hog slaughter scam.
As Tether seeks legitimacy on the back of record profits, it is positioning itself to become a powerful financial player far beyond cryptocurrencies. I asked Ardoino which CEO he considers a role model in building his company, and like many crypto founders, he mentioned Elon Musk.
“What I like about Elon is that he is trying to figure out how we as humans should think about the next 20 years, which are most critical to our survival, while AI tools are very likely to have a negative impact on society.” “The ability to do that,” Ardoino said. “His thoughts going forward and how things might develop? That’s what I really like about The Mask.”
Mr. Ardoino’s plan to make Tether a large, permanent part of the world’s money supply reflects not only Mr. Musk’s focus on the future, but also his ambitions. Whether that’s a good or bad thing depends a lot on your position.
jeff john roberts
jeff.roberts@fortune.com
@jeffjohnroberts
decentralized news
Paradigm led a new $43 million round in Succinct, a startup building tools to help other applications integrate zero-knowledge proofs. (Axios)
FTX’s successor CEO has blasted Sam Bankman Freed’s recent claims that there was no loss of money or harm to customers as “delusional.” (Bloomberg)
After weeks of dramatic gains, Bitcoin ETFs saw net outflows this week, partially reflecting profit-taking by some traders. (luck)
BlackRock has launched the first tokenized asset fund on the Ethereum blockchain, offering yield from a basket of safe-haven assets represented by the token BUIDL. (coin desk)
On Friday, Bitcoin fell below $64,000, even as stocks hit new all-time highs. (The Block)
meme-o-the-moment
Cryptocurrency in your morning cup of coffee at a DC coffee shop:
This is the web version of Fortune Crypto, a daily newsletter about the coins, companies, and people shaping the crypto world. Sign up for free.
