Tether, the issuer of the $84 billion USDT stablecoin, is gearing up for significant changes in its operational transparency and leadership. From December, Paolo Ardoino, Tether’s Chief Technology Officer, will take the reins as the company’s new CEO, according to the latest report.
Ardoino, known for his low public profile, has emerged as the unofficial face of the company, communicating primarily through social media and industry conferences.
Tether’s USDT, a digital token pegged to the US dollar, has gained immense traction over the past year, comprising nearly 70% of the stablecoin market. However, concerns have persisted regarding the lack of transparency about its operational practices and the composition of reserves backing the stablecoin. Tether faced regulatory scrutiny and a $40 million settlement in 2021 for alleged misrepresentations of its collateral.
The company has announced plans to start publishing real-time data on its reserves in the coming year to address these concerns. Paolo Ardoino’s objectives also include increasing investment in technology, engaging in discussions with regulators, and expanding into renewable energy initiatives.
Tether’s Crucial Role In Crypto Trading
The company’s systemic importance in the crypto industry cannot be overstated, as it accounts for a majority of trading volume on centralized exchanges. With an employee base expected to grow from 60 to 90 by the end of 2023, Ardoino inherits a highly profitable business primarily supported by short-dated US Treasury bills.
Ardoino will also continue to serve as the Chief Technology Officer at Bitfinex, Tether’s sister crypto exchange. The current CEO of Tether and Bitfinex, Jean-Louis van der Velde, will transition into an advisory role as Ardoino takes the helm.
As a staunch supporter of Bitcoin, Ardoino entered the crypto space almost a decade ago by joining Bitfinex as an engineer. A passion for Bitcoin fueled his journey into cryptocurrencies, and he assumed the role of Chief Technology Officer at both Bitfinex and Tether.
While the company is based in the British Virgin Islands and maintains a low public profile, Ardoino’s ascent to CEO comes at a pivotal moment. Regulatory scrutiny of stablecoin issuers is rising globally, and Tether is under pressure to deliver a long-awaited full financial audit.
Additionally, the absence of specific legislation on stablecoins in the US has so far benefited the company. However, industry experts anticipate increasing pressure as regulators seek to establish standards and legitimacy.