Tether CEO Paolo Ardoino Addresses Mounting Challenges to USDt, the World's Leading Stablecoin

Paolo Ardoino, CEO of Tether, addressed mounting challenges to USDt, the world's leading stablecoin, in a February 25, 2025, X post.

Paolo Ardoino, CEO of Tether, addressed the company’s perspective on mounting challenges and a perceived “Kill Tether” agenda set by rival firms in a February 25 X post.

Ardoino alleged that the company’s competitors are pursuing a “Kill Tether” agenda, applying pressure on regulators and relying on legal maneuvers. This, he claimed, is driven by their inability to innovate and compete fairly in the market.

“They fear the company’s vast network of over 400 million users, especially in emerging markets, which are underserved by traditional financial institutions,” Ardoino stated.

The company’s vast network includes digital remittance platforms and thousands of physical kiosks across Africa and South America. This infrastructure, he said, is crucial for providing financial access and drives USDt’s growth, with 35 million new wallets being added each quarter.

However, Ardoino noted that the European Union’s Markets in Crypto Assets (MiCA) framework, which came into effect in late 2024, poses a hurdle for Tether to operate within the EU.

MiCA approved the listing of 10 stablecoin issuers, but not Tether. The company’s exclusion is linked to the European legislators’ uneasiness with foreign firms holding significant market share in their crypto landscape.

In March, exchanges like Kraken and Crypto.com plan to delist USDt by March 31 to comply with MiCA rules. This shift will leave only Circle’s USD Coin as the main stablecoin on European exchanges. The move will force users to switch to compliant stablecoins, potentially disrupting Tether’s European market share.

The company is known to be holding over $115 billion in U.S. Treasuries, making it the 18th largest holder of these assets.

In the U.S., the proposed GENIUS Act and STABLE Act aim to regulate stablecoin issuers more closely. Vance Spencer of Framework Ventures noted that these bills might block foreign issuers from accessing U.S. Treasuries. He argued this could weaken the dollar’s global influence.

“They’re trying to create an environment where only U.S. issuers can have full access to U.S. liquid assets, which would be a setback for broader financial inclusion,” Ardoino said.

Ardoino added that these measures threaten the liquidity USDt provides to developing economies and new markets.

“We’re focused on bringing financial services to people who lack access to traditional banking structures. We build the infrastructure for USDt expansion by working closely with communities that lack formal banking services,” he said.

This approach helps facilitate payments and remittances, fostering trust in both USDt and the U.S. dollar, he said.

“We’re grateful for the opportunity to serve those around the world who are looking for innovative financial solutions,” Ardoino concluded.