In a recent interview with Fox Business, Tether CEO Paolo Ardoino confirmed that the USDT stablecoin is 104% backed.
This means that the value of collateral held by companies is significantly higher than the total supply of stablecoins.
Ardoino told Fox Business that ensuring the security of stablecoin products remains the company’s “top priority.”
According to data provided by CoinGecko, USDT’s market capitalization is currently approaching the $120 billion level.
Back in 2021, the company was fined $41 million by the CFTC for making misleading statements about its reserves.
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The company issues certificates quarterly to reveal its reserves.
Last year, American financial services firm Cantor Fitzgerald admitted it was responsible for overseeing Tether’s Treasury bills. As Ardoino pointed out, Kantar is directly connected to the Fed, meaning payments can be made through the Fed under any circumstances. The company holds $97 billion worth of government bonds.
Earlier this year, Ripple CEO Brad Garlinghouse caused a stir when he suggested that the US government was targeting Tether. The statement came shortly after Ripple announced its own stablecoin, which Ardoino didn’t like. The latter accused Ripple’s president of spreading FUD and emphasized that the company is cooperating with law enforcement agencies around the world.
