The biggest stablecoin issuer in the world, Tether, is getting ready to introduce a stablecoin headquartered in the United States as early as this year, as its CEO increases his presence in Washington to influence cryptocurrency regulations.
According to Paolo Ardoino, the CEO of Tether, the company is planning to launch a new dollar-pegged stablecoin in the United States as early as this year. The action is taken as Tether, which was formerly believed to be a criminal’s “go-to cryptocurrency,” positions itself as a partner for law enforcement and lawmakers in the United States.
“A domestic stablecoin would be distinct from the global stable coin,” Ardoino stated on Wednesday during the Token2049 conference in Dubai. It is contingent upon the final legislation’s timetable. Yet, he stated, “we are looking at that by the end of the year or early next year at the earliest.”
But on Capitol Hill, others are questioning the next step’s timing and strategy.
According to the report, Ardoino’s recent charm blitz in Washington that includes parties with crypto insiders, a lunch with Senator Bill Hagerty on Capitol Hill, and private meetings with lawmakers has brought attention to Tether amid President Trump’s move toward crypto.
This influence may now be influencing important laws, like as the GOP-supported GENIUS Act, which detractors claim has loopholes that favor Tether and other foreign issuers, including clauses permitting operations in the United States if they cooperate with law enforcement.
Despite a history of regulatory penalties, Tether, headquartered in El Salvador, has prioritized legal cooperation in its lobbying efforts.
Ardoino stated that no corporation, including those in the traditional financial system, has such extensive engagement with law enforcement. They continuously strive to improve the efforts to prevent criminal conduct. Their tools are superior to those used in traditional banking systems, as demonstrated daily.
Concerns regarding the company’s capacity to support its digital assets were also addressed by Ardoino. Tether agreed to pay $18.5 million to the attorney general of New York in 2021 to resolve claims that it had misrepresented its reserves. Now, under the management of Wall Street titan Cantor Fitzgerald, it holds billions in U.S. Treasuries and releases attestation reports. Ardoino maintains that the company is well capitalized in case of a market shock.
According to him, they are almost at $120 billion in U.S. Treasury reserves. They have an excess of $7 billion in corporate capital in equity. That is truly unprecedented, and he wishes that established financial institutions would at least attempt to imitate them in order to offer their customers better products.
The company owns approximately $120 billion in US Treasuries, according to Tether’s most recent attestation report. In its first quarter report, independent auditors verified that assets and reserves were about $5.6 billion greater than liabilities, compared to over $7 billion in its December audit.
Some have also questioned Tether’s relationship with Cantor, which is currently led by the sons of U.S. Commerce Secretary Howard Lutnick. While stating that he doesn’t communicate with Secretary Lutnick “because there are proper walls given the potential conflict of interest,” Ardoino also said that “we have great relationships with many people in the U.S. and also now in Washington.”
President Donald Trump’s financial company, World Liberty Financial, is set to introduce a stablecoin backed by the US dollar, according to recent announcements made by Eric Trump and his older brother Donald Trump Jr.
