USDT Now Serves 500 Million Users: Paolo Ardoino

Tether CEO Paolo Ardoino has announced that the USDT stablecoin serves 500 million users globally. The milestone marks Tether’s and USDT’s growing influence in the digital finance space. 

Tether has attributed USDT’s growth to strong global demand and increased adoption in emerging markets, primarily for remittances and everyday financial transactions. 

USDT Hits 500 Million Users 

Tether CEO Paolo Ardoino has revealed that USDT now serves 500 million users worldwide. Ardoino attributed this growth to global demand and widespread adoption in emerging economies. Tether has been making efforts to expand its presence in emerging markets where USDT is used in remittances and payments. It has also expanded its efforts to promote grassroots adoption of USDT, engaging with communities to integrate the stablecoin into everyday life. 

Such efforts significantly boosted USDT circulation, cementing its importance in underdeveloped and underserved regions of the world. Ardoino believes direct engagement with local communities has helped ensure USDT adoption beyond centralized exchanges and apps. USDT’s presence has grown in Africa, Southeast Asia, and Latin America. Its use in retail payments and peer-to-peer transfers has also maintained steady growth. 

A New Dollar-Backed Stablecoin 

Tether is also planning to launch a new dollar-backed stablecoin for the US market. Bo Hines, CEO of Tether’s US arm, confirmed the company will not be raising any external funds for the project. Hines stated that the company will issue new equity instead, and existing investors will retain their shares. Tether is also planning to raise $20 billion at a $500 billion valuation, representing 3% of the company. The raise would make Tether one of the world’s most valuable firms alongside SpaceX and OpenAI. 

Tether has reported a record Q2 profit of $4.9 billion, significantly higher than its previous record of $4.54 billion. The company is also one of the largest holders of US government debt. Meanwhile, on-chain data reveals the USDT supply at around $182 billion, followed by Circle’s USDC at $75 billion. Ardoino stated, 

GENIUS Act Expands USDT Presence 

Tether’s latest milestone comes following decisive steps by the US government to establish stablecoin regulation through the GENIUS Act. Ardoino was one of the crypto executives present when President Donald Trump signed the stablecoin legislation, creating a federal regulatory framework for fiat-pegged tokens. The GENIUS Act requires stablecoins to be fully backed by U.S. dollars or similarly liquid assets. It also mandates an annual audit for stablecoin issuers with a market capitalization of over $50 billion. 

The new legislation has led several banks to contemplate launching their own stablecoin. Several financial institutions, including JPMorgan, Bank of America, Citigroup, and Wells Fargo, could launch their own stablecoin and threaten Tether’s dominance in the stablecoin market. However, while Ardoino conceded that new competitors may surpass Tether in the short term, it has better technology and a better understanding of the stablecoin market than its competitors. 

Regulatory Pressures 

As mentioned earlier, the GENIUS Act requires stablecoins with a market capitalization of over $50 billion to undergo regular audits. However, Tether still lacks a full audit from PwC or Deloitte. Ardoino has said that a full audit from one of the Big 4 remains a key priority. However, for now, Tether relies on quarterly attestations by BDO Italia. 

Tether also faces several challenges in Europe following the EU's passing of the MiCA regulations for digital assets. The new regulation instructed exchanges across Europe to stop offering stablecoins that do not comply with the new rules by April 2025. The new rules impacted USDT since it did not meet MiCA’s regulatory requirements.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.