Tether, the issuer of the world’s largest stablecoin, positions itself as moving beyond its crypto-trading origins. Paolo Ardoino, the company’s chief executive, says it aims to serve both as a financial tool for households in unstable economies and as infrastructure for the digital economy of the future. It has already assumed a systemic role by sheer size and usage, with $170 billion in assets, $127 billion in US Treasuries, and the ability to redeem $7 billion in 48 hours. Banks now approach Tether to collaborate, underscoring its growing role alongside major financial institutions and sovereign investors. The company is also among the world’s most profitable private firms, with annual profits exceeding $13 billion and a quarterly surplus of more than $5 billion. Its reserves, largely in short-term US Treasuries and diversified into Bitcoin and gold, cement its presence in capital markets and reinforce its position as a systemic stablecoin issuer. “Invented 11 years ago, stablecoins are now recognised as powerful technology,” Ardoino says. “USDT has reached hundreds of millions of wallets across emerging markets and developing countries. It is a technology that is here to stay and can do much more than what it is doing today.” How bottom-up adoption reshaped finance As central banks and traditional institutions begin to explore tokenised assets, the digital representation of deposits, bonds or equities on blockchain networks, Tether has built its position through early adoption. The Bank for International Settlements (BIS) has promoted initiatives for banks to issue tokenised deposits, which Ardoino calls a “time mismatch” because debates continue while adoption is already widespread. “The BIS is trying to create a technology they control and spread it to all banks,” he explains. “Every bank is in a different jurisdiction and subject to different rules. What we did was start from the ground up. We built a user base of people who wanted to use this technology, and now the banks are integrating with us.” This bottom-up growth has redefined Tether’s relationship with financial institutions. Banks and corporations now approach the company due to its extensive adoption base. Ardoino expects dozens of dollar stablecoins to be issued by banks, retailers and technology firms, and stresses that they must be interchangeable on a one-to-one basis to ensure seamless usage. Such systemic growth has inevitably drawn regulatory scrutiny, underscoring the need for resilience as adoption expands across various markets. Stablecoins tailored for market realities Ardoino explains that USDT was created for economies with high inflation, citing Nigeria, Argentina and Turkey. “If you bring USDT to Nigeria, efficiency improves dramatically; in the United States, it only improves by a few percentage points. That is why we built USA₮, a separate stablecoin for American institutions,” he says. He adds that making USDT and USA₮ interoperable ensures users can move seamlessly between them, which is critical for adoption across different markets. However, it remains to be seen how this model will adapt under evolving regulatory frameworks. Ardoino also highlights Tether’s reorganisation into four divisions—data, finance, power and education, marking its shift from a single-product issuer to a diversified digital enterprise spanning analytics, reserve management, energy, and financial literacy. These structural shifts reflect a broader change in how USDT is utilised, with its role expanding beyond trading desks to become an economic lifeline for households. Stablecoins as lifelines for households Ardoino stresses that financial inclusion now drives the usage of USDT. “Before 2020, 99% of USDT’s usage was crypto trading,” he says. “Now, 50% to 60% is not trading. It is commodity trading, remittances, cross-border payments and settlement of invoices. It has become part of a new digital economy.” The shift is most visible in inflation-hit economies. “In Argentina, the peso lost 98% of its value against the dollar in 10 years. In Turkey, the lira lost 80% in five years,” he notes. “Families work hard all year and end up poorer. Around 35% to 40% of USDT’s supply is used as savings accounts by families who do not trust their central banks.” He cites data to underline the trend. “Around 67% of all USDT transactions involve only USDT. Other stablecoins exhibit the opposite trend, with 80% of transactions also involving another digital asset. In our case, people use USDT for payments and remittances. Traditional remittance services remain expensive, while USDT lowers costs significantly.” By shifting usage towards households, small businesses, and remittances, USDT has evolved into a parallel financial system that delivers value where traditional banking services remain limited. Regulation and resilience under scrutiny As adoption has grown, regulators have intensified oversight. Tether has chosen not to comply with Europe’s Markets in Crypto-Assets (MiCA) framework. “MiCA forces stablecoin issuers to keep 60% of reserves in insured cash deposits in European banks,” Ardoino explains. “If I have €3 billion ($3.2 billion) in a European bank and it fails, I get back €100,000 ($106,000). Banks can lend out up to 90% of deposits, so if I need to redeem billions quickly, they cannot fulfil the request. I do not want that risk.” He points to 2022, when traders attempted a run on Tether. “We redeemed $7 billion in 48 hours and $20 billion in 20 days.” Ardoino views the US approach as more effective. “The Genius Act is more conservative than MiCA. It has stronger requirements for reserves and limits the types of assets you can hold. We took part in the drafting to ensure strong consumer protections.” The company maintains most of its reserves in short-term US Treasuries, with allocations to gold and Bitcoin that provide liquidity in volatile market conditions. Its reserve composition allows it to maintain caution in asset management while remaining resilient under stress. Privacy, regulation and supportive jurisdictions Tether has shifted its structure to align with jurisdictions that favour digital assets. Ardoino says Tether has reduced European exposure, increased engagement with US regulators, and relocated its corporate base to El Salvador, pursuing a geopolitical strategy to secure regulatory stability and operate in supportive environments. Ardoino warns that central bank digital currencies (CBDCs) raise deep social and financial concerns. “CBDCs can be used in a dystopian way. If you say something a government dislikes, they could freeze or seize your money. With a credit card, your data stays with the issuer, not directly with the government. With CBDCs, governments can see and control everything.” He argues that protecting the separation between governments and money safeguards civil society, preserving privacy while enabling lawful oversight. For Tether, this strengthens the case for private stablecoins as digital cash that combines fiat stability with transactional autonomy. Alongside the privacy debate, Tether is also preparing for an economy where machines, not just people, are primary users of money. Preparing for an AI-driven financial system Ardoino draws on his technologist background, noting he started coding at eight and is a lifelong sci-fi fan. This lens, he says, shapes why he links programmable money with the rise of AI agents. “For the past 10 years, USDT achieved the disintermediation of people and money,” he says. “We want to bring this disintermediation to telecommunications, social media and even energy.” Artificial intelligence (AI) anchors this strategy. “In the next 10 years, the number of AI transactions will be a thousand times greater than human ones,” he predicts. “If there are a trillion AI agents, they will not have accounts with PayPal or Wells Fargo. They will use stablecoins because programmability is what AI requires. USDT is already global, supports many transport layers, and is interoperable with almost everything. It is the logical choice for AI.” Tether is investing billions of dollars from its profits into AI infrastructure and Bitcoin mining, thereby creating the backbone of the future digital economy for payments, computation, and energy. Ardoino further clarified that Tether does not plan an initial public offering (IPO). Instead, he said the company seeks strategic investors to support its long-term positioning, favouring selective alliances with leading technology backers over public market scrutiny. From utility to infrastructure at a global scale From its beginnings as a trading utility, Tether has evolved into a financial lifeline in fragile economies and now seeks to position itself as infrastructure for a machine-driven digital economy. Its strategy spans finance, digital infrastructure and energy, while its asset base places it among the largest private buyers of US Treasuries. By combining its role as a safety net for households with investments in emerging technologies, Tether aims to challenge banks and governments in shaping the next phase of monetary and technological evolution. Its rise has also drawn scrutiny for limited auditing standards and historical controversies. Meeting higher expectations for transparency remains a central test for long-term trust. Whether Tether fulfils its ambition to anchor the digital economy will depend on balancing scale with trust, proving its reach in fragile markets can support a transparent, enduring role in global finance.
