Tether Focuses on International Markets Amid U.S. Regulatory Developments
Tether, a prominent stablecoin issuer, has announced that even as it seeks to align with potential U.S. regulations regarding digital currencies, its primary focus will remain on markets outside the United States.
“We recognize the unique opportunity to adapt and comply,” stated Tether’s CEO, Paolo Ardoino, during a recent interview with Bloomberg Television. He was referring to a bill currently progressing through the U.S. Senate, awaiting similar legislation in the House of Representatives. “We can ensure compliance while keeping our eyes on foreign markets.”
The report indicates that Tether, based in El Salvador, represents over 60% of the global stablecoin market but does not cater to U.S. customers.
The bills proposed in the Senate and House are believed to require stablecoins to be fully backed by cash and “safe assets,” including short-term Treasury securities. This provision would subject issuers to bank secrecy laws and anti-money laundering regulations, while foreign issuers would have to comply with comparable rules.
While most of Tether’s reserves consist of compliant assets, the report highlights that some portions include non-compliant assets like Bitcoin and secured loans.
Furthermore, Tether is currently providing quarterly proofs instead of engaging the Big Four accounting firms for auditing, as mentioned in the report.
“A full audit is our priority,” Ardoino remarked on Bloomberg Television.
As Tether works toward compliance with the U.S. legislation, Ardoino also noted that the company is planning to roll out an artificial intelligence platform, enabling users to make payments using both Bitcoin and its USDT stablecoin.
Earlier, on May 2, Ardoino had shared with CNBC the plans for a new dollar-based stablecoin in the U.S., indicating that its launch timeline depends on the progression of the proposed legislation.
Tether’s most recent independent financial audit, released on May 1, revealed its total assets to be $14.928 billion against liabilities of $143.68 million related to fiat collateral stablecoin holdings, as of March 31.
