Dubai, United Arab Emirates – Tether, known for being the largest issuer of stablecoins, is gearing up to introduce a US-based stablecoin later this year. CEO Paolo Ardoino mentioned that the company is keen to expand its influence in Washington and help shape crypto regulations.
In a conversation with CNBC this week, Ardoino disclosed that they are devising a plan to roll out a new stablecoin pegged to the US dollar by the end of this year. This development follows Tether’s past reputation for being linked to illicit activities, as the company aims to rebrand itself in a more favorable light, aligning with US lawmakers and law enforcement.
“It’s going to be different from existing stablecoins,” Ardoino explained to Dan Murphy from CNBC during the Token2049 conference in Dubai on Wednesday. He added, “It really depends on how the legislative timeline plays out, but we’re aiming for the end of the year.”
However, this timeline and Tether’s approach have some skeptics raising eyebrows in Washington.
Recently, Ardoino has been active in DC, meeting privately with lawmakers, attending a ranch event with Senator Bill Hagerty, and even hosting a party with crypto enthusiasts. A report by the New York Times highlighted the pro-crypto momentum under President Trump, putting Tether in the spotlight.
The consequences of these efforts could significantly influence essential legislation, including GOP-backed initiatives that critics claim might contain loopholes favoring Tether and other foreign issuers. If these companies collaborate with law enforcement, they’ll be allowed to operate in the US.
Despite facing regulatory challenges in the past, Tether, which is based in El Salvador, emphasizes its commitment to legal collaboration in its lobbying strategies.
“Even in traditional finance, there’s a strong partnership with law enforcement,” Ardoino noted. “We’re constantly looking to enhance our measures against criminal activities. In fact, we have superior tools compared to the conventional system, which we demonstrate on a daily basis.”
He also tackled concerns surrounding Tether’s capacity to back its digital assets. Back in 2021, the company settled with the New York Attorney General for $18.5 million over claims related to misrepresentation of its reserves. According to Ardoino, Tether is adequately prepared for market upheavals, claiming, “We’re very close to having the US Treasury manage $120 billion in our reserves, with over $7 billion excess in the capital. This is exceptional, and we hope traditional financial institutions will strive to emulate our standards for consumer products.”
Tether’s recent certification report indicates it holds around $120 billion in reserves. An auditor’s report from the first quarter confirmed that its assets exceed its liabilities by nearly $5.6 billion, representing a decrease over $7 billion since December’s audit.
The partnership with Cantor, which is now overseen by the sons of the US Secretary of Commerce, Howard Lutnick, has also sparked some questions. Ardoino mentioned he wouldn’t engage with Secretary Lutnick directly.
Recently, Eric Trump and Donald Trump Jr. shared plans to develop a US dollar-backed stablecoin through World Liberty Financial, a financial venture associated with their father, former President Donald Trump.
