Latest news with #Ardoino
Arabian Post
3 days ago
- Business
- Arabian Post
Tether Targets Top Spot Among Bitcoin Miners
Tether chief executive Paolo Ardoino has pledged to catapult the company into the position of the world's leading Bitcoin miner by the end of 2025, asserting that crypto‑mining is key to safeguarding its $10 billion‑plus Bitcoin reserves. He outlined a sweeping strategy centred on large‑scale investment in mining and energy infrastructure across Latin America. Ardoino said Tether has already channelled upwards of $2 billion into mining and energy systems and is now accelerating deployment. While the company's precise hash‑rate remains confidential, executives emphasise that their investment reflects both scale and strategic intent. The mining push forms part of a broader financial architecture designed to secure the firm's Bitcoin holdings and further embed it within the Bitcoin ecosystem. The announcement emerged at the Bitcoin Conference in Las Vegas, where Ardoino noted Tether's robust earnings—reporting a $13 billion profit in 2024—and a sizeable portfolio of U.S. Treasuries. He revealed the firm holds more than 100,000 BTC and hinted that the mining operation will leverage renewable energy sources supporting its underlying reserves. ADVERTISEMENT Tether is concurrently preparing to open‑source its Bitcoin Mining Operating System, which the company says will democratise mining by enabling participants ranging from individual Raspberry Pi setups to large‑scale farms to connect into secure point‑to‑point networks. The move is intended to broaden participation, enhance resilience of the Bitcoin network, and solidify Tether's position as a leader in infrastructure innovation. Energy infrastructure forms a crucial part of Tether's strategy. Ardoino highlighted investments across Latin America in renewable energy projects, including substantial commitments in Uruguay and El Salvador, where Tether relocated its headquarters and backs geothermal initiatives through a project known as Volcano Energy. These investments reflect a dual focus: securing clean, reliable power for mining and contributing to regional energy resilience. The strategic rationale centres on mitigating the risks of holding large Bitcoin reserves. Mining, Ardoino explained, provides not only operational control but also reinforces financial sovereignty, anchoring assets within a secured blockchain‑based ecosystem. By internalising hash‑rate and power sources, Tether aims to shield its holdings from external dependency and volatility. Security considerations have informed the launch of MOS. As a decentralised architecture, the system allows devices to operate without reliance on central servers, reducing vulnerability to single‑point failures or third‑party disruptions. Looking ahead, Tether plans to integrate artificial‑intelligence tools into MOS to monitor performance and optimise operations in real time. Tether's move into open‑source mining software dovetails with its broader tech ambitions. Ardoino introduced QVAC, an AI platform that uses non‑custodial wallets, and unveiled plans for a Bitcoin‑centric wallet developed with Rumble. These projects underscore Tether's strategy to embed Bitcoin deeper into digital finance and expand its ecosystem services. Market observers note that Tether's mining ambition places it in direct competition with publicly traded mining firms. Although exact hashrate figures are absent, the scale of investment and reserve holdings suggest that surpassing existing miners is credible by late 2025. Tracking progress will require scrutiny of deployment timelines and performance metrics, which Tether has declined to specify. Financial analysts regard Tether's diversified asset approach—spanning Bitcoin, gold and U.S. Treasuries—as a deliberate hedge strategy. The large Bitcoin reserves, reportedly worth over $10 billion, alongside substantial gold and treasury holdings, underpin a multifaceted capital structure. By converting passive holdings into active mining assets, Tether aims to generate operational yield and enhance asset security. Critics of large‑scale corporate mining warn of environmental strains and centralisation risks. Tether's emphasis on renewable energy uptake and decentralised software architecture reflects an attempt to mitigate these concerns. If MOS and energy projects deliver as promised, the model may provide a template for sustainable, corporate-scale participation in Bitcoin mining. Next steps include the public release of MOS, scheduled for later in 2025, alongside scaling up of energy infrastructure across targeted Latin American sites. Close monitoring of mining output, energy efficiency, and systems performance will determine whether Tether's pledge translates into actual dominance in global Bitcoin mining.
Forbes
12-06-2025
- Business
- Forbes
Stablecoins Are An Opportunity For Banks, Not A Threat
A Tether chart as Paolo Ardoino, chief executive officer of Tether Holdings Ltd., right, speaks ... More during a Bloomberg Television interview in New York, US, on Friday, May 23, 2025. Ardoino discussed the US government's decision to regulate stablecoins and what the GENIUS Act can do to help promote stablecoins. Photographer: Michael Nagle/Bloomberg Stablecoins, such as Tether, are attracting considerable attention. Last year when the Stripe CEO Patrick Collison, called stablecoins 'room-temperature superconductors' for financial services (after paying $1 billion for Bridge), I for one did not view his comments as hyperbolic in the least, and now that Stripe has bought Privy (which has some 75 million stablecoin wallets out there), I think we can safely say that stablecoins are marching into the mainstream. Stablecoin is a misused word. It originally meant a digital asset, some form of token, that had its value maintained at a fixed level with reference to an external benchmark via algorithmic management of supply and demand. Now, however, the word has come specifically to mean a kind of digital asset that is institutionally bound to fiat currency, either by maintaining a 100% reserve in commercial bank deposits in that currency or by holding a 100% reserve high-quality liquid assets denominated in that currency (eg, treasury bills). Globally, stablecoins are on a tear and in almost all cases the cash and assets are the US dollar and dollar securities. The two largest stablecoins out there right now are Tether (USDT; $149 billion) and the USD Coin from Circle (USDC; $62 billion). Circle's IPO, also last week, saw shares jump as high as $103.75 from the offer price of $31 with heavy investor demand. Tether and Circle therefore account for some $240 billion in circulation. This is not much in the $36 trillion US Treasury market, but the growth has certainly focused US Treasury's attention. Why? Well, I agree with Marc Rubenstein's analysis on this: when I bought my first stablecoin, it was in order to play around in 'crypto'. But it is now clear that stablecoins are decoupling from cryptocurrency and their adoption is driven by "practical applications rather than speculation". It seems that Stablecoin transactions, broadly speaking, support real world business. For example, Elon Musk's SpaceX uses stablecoins to repatriate funds from selling Starlink satellites in Argentina and Nigeria, while ScaleAI (the data labelling and AI training company that Meta has bought a 49% stake in, for nearly $15 billion) offers its large workforce of overseas contractors the option of being paid this way. A recent YouGov survey (commissioned by Visa and others) of 500 cryptocurrency users in each of five emerging markets found that stablecoins are increasingly seen as not only a practical application of the new transaction technologies but a 'core application' in the crypto space, offering practical solutions such as currency conversion, remittances and payment for goods. Recent developments look like powering stablecoins across many sectors. Bridge just launched stablecoin issuance APIs that allow developers to issue USDB, its internal stablecoin, or spin up white-labeled stablecoins backed 1:1 by USDB (with free conversion to USDC). And with Bridge as the stablecoin pipes and Privy's wallets as the front-end, users will be able to spin up wallets for their clients while, as Noelle Acheson says, abstracting away the hassle to the point where users need not even know they're using a wallet – with Privy and Bridge integrations, transactions would become as easy as 'click here to pay', and balances could show up in simple and familiar web accounts. The ability to move money around without hassle will undoubtedly reshape the global financial system, because stablecoins are about more than making payments cheaper for supermarkets or easier for small businesses in other countries. Martin Sandbu, writing in The Financial Times, says that the international payment system is on the cusp of huge change for both political and technological reasons. He is right, of course, For one thing, the weaponisation of the dollar-based financial system — note how the US has cut off access to SWIFT in certain circumstances — has prompted quests for alternatives from allies and adversaries alike. (You might see this quest as of central importance in the financial world and perhaps even, as I wrote in my 2020 book The Currency Cold War, a new space race, in which 'to the moon' has a very different meaning.) Friction free. Regulators have concerns. A key official whose job it is to consider the digitalisation of money at a developed world central bank returned from the Spring International Monetary Fund-World Bank meetings with a deep sense of unease. commenting "There is a wall of $!1* money coming our way, and we're doing nothing about it'. He was referring to the central banking community at large. And he's right. He is right for two reasons. The first is that stablecoins threaten central bank control over settlement assets. While some central banks are looking to connect existing payments systems with the next generation token-based infrastructure, others (including the European Central Bank) think that the markets need nothing short of tokenised central bank money and that if they do not provide it then the participants will use stablecoins instead. The second reason is, of course, that these stablecoins are almost all pegged to the US Dollar and the seigniorage accrues not to the Fed or any other central bank but to private operators. These drivers have implications both for America and for the rest of the world. For example, a Russian plan to break the grip of the US dollar through a new international payments network went nowhere are the BRICS summit in Kazan last year. Despite all of the talk of new reserce currencies, dollar-backed stablecoins are the choice of indiviuals and businesses the world over. This is why the policymakers have a genuine concern that if US stablecoins gain widespread usage, there is a risk of 'digital dollarisation' where platforms mean that participants will stay in flexible, liquid digital dollars and effectively undermine national sovereignty in monetary policy. One more important point to make. The discussion about the relationship between stablecoins and banking has been vigorous in recent weeks, but from the bank perspective, I think that stablecoins are an opportunity. Banks and stablecoins are apples and oranges. I am fond of quoting Morgan Ricks, a professor at the Vanderbilt Law School and a former Treasury official, on this. He said The banking technology commentator Tom Noyes says the idea the stablecoins will supplant established retail banking relationships is a bunch of 'hooky' and goes on to make the point that banks are actually well-positioned to take advantage of innovation in this area. I am sure he is right which means that whether you are in the US or anywhere else, your bank, fintech or payment services organisation needs a stablecoin strategy.
Arabian Post
04-06-2025
- Business
- Arabian Post
Tether Strengthens Global Footprint as U.S. Tightens Crypto Regulations
Tether, the issuer of the world's most widely used stablecoin USDT, is intensifying its focus on emerging markets across Asia and Latin America, as U.S. lawmakers advance stringent legislation that could reshape the digital asset landscape. From January 2024 to February 2025, USDT accounted for between 62% and 91% of global stablecoin payment volumes, with Asia and Latin America leading adoption. Singapore, Hong Kong, and Japan collectively represented 36.3% of global stablecoin traffic, while the United States trailed at 18.7%. Tether CEO Paolo Ardoino reaffirmed the company's commitment to these regions, stating that the firm will continue prioritizing emerging markets outside the U.S., despite regulatory progress and a pro-crypto administration. Ardoino emphasized that the company sees more opportunity abroad than under strict upcoming U.S. laws. ADVERTISEMENT In a strategic move to deepen its presence in Latin America, Tether announced a significant investment in Orionx, a Chile-based cryptocurrency exchange and financial infrastructure firm. Orionx operates across Chile, Peru, Colombia, and Mexico, offering services such as cross-border payments, remittances, and treasury solutions. The investment aims to enhance Orionx's technological capabilities and scale stablecoin-powered infrastructure throughout the region. Ardoino highlighted the importance of this partnership, noting that the investment supports a high-impact company and advances Tether's broader vision of making stablecoin-powered financial tools accessible to underserved communities across Latin America. The surge in stablecoin adoption in Latin America is attributed to economic instability and high inflation rates in countries like Argentina and Brazil. Stablecoins offer a more stable store of value and a means to conduct transactions without relying on volatile local currencies. Tether's USDT has become a preferred option for everyday needs such as saving, sending money to family, and conducting business transactions. Meanwhile, in the United States, the regulatory landscape for stablecoins is undergoing significant changes. The Senate is advancing the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which introduces stricter regulations on stablecoin issuers, focusing on consumer protection, national security, and financial system integrity. Key provisions include prohibiting yield offerings by stablecoins, mandating audits, and enhancing anti-money laundering protocols. Despite the U.S. administration's pro-crypto stance, with President Donald Trump and Vice President JD Vance advocating for the industry, the GENIUS Act reflects a bipartisan effort to establish a robust regulatory framework. The act has garnered support in the Senate, passing a motion to proceed with a 69-31 vote. However, the legislation has sparked debate among lawmakers. Some Democrats express concerns over potential conflicts of interest due to the Trump family's direct involvement in crypto ventures. Senators Chris Murphy and Elizabeth Warren have opposed the bill on ethical grounds, while others like Senators Cory Booker and Kirsten Gillibrand support it, emphasizing the need for consumer protection and clearer crypto regulations.
Axios
28-05-2025
- Business
- Axios
Tether acquisition signals move into commodities
While everyone else in the stablecoin industry has its eyes on big banks and hedge funds, the issuer of the world's largest stablecoin, tether, is watching a much older business: commodities. Why it matters: Stablecoins are the biggest story in crypto policy right now — and may well be the biggest story in finance before long. Driving the news: In a move that may seem unexpected for a company primarily known as a liquidity instrument for trading bitcoin and its progeny, Tether recently acquired a 70% stake in Adecoagro, an agriculture and energy company operating in Latin America. Adecoagro's been in business for more than 20 years, and generated around $1.5 billion in revenue last year from farming food crops and producing renewable energy from sugarcane. It calls itself one of the largest owners of productive farmland in South America. Between the lines: "The bulk of our investments are companies that are furthering and expanding our distribution network," Tether CEO Paolo Ardoino tells Axios. That's distribution of tether, or USDT, the company's massive dollar-backed stablecoin. Many of those investments — around 90 made over the last several years — have been directed toward expanding street-level use of USDT by retail traders, but Tether's eyeing another giant market now, as the Adecoagro deal illuminates, Ardoino says. The big picture: "The biggest reason in the next five years of growth for USDT will be commodity trading," Ardoino says. "In my opinion, commodity trading and all the international deals for commodity run on stablecoins," he says. Commodity traders tell them about the pain of using traditional finance. In November, Tether announced that USDT had been used in financing a trade of crude oil worth $45 million. The advantage of this, Ardoino explains, is that ships won't start loading oil until the wire clears. That can take days with payments as we know them, but USDT settles nearly instantly. State of play: Tether first started talking about trade finance late last year, but having an actual commodities business gives it new leverage. What's next: With Tether now steering it, Adecoagro will be looking to use stablecoins more as it sells rice, bio-ethanol and other agriculture products throughout its network. The bottom line: "As of today, the adoption of USDT and the growth of USDT has been done very organically. In the number of hundreds of millions of users," Ardoino says. That got the stablecoin to a $150 billion market cap.
Business Times
25-05-2025
- Business
- Business Times
Tether focuses elsewhere while US seeks to regulate stablecoins
[CHICAGO] While Congress is considering bills that would help integrate stablecoins more into mainstream finance, the largest issuer of the digital tokens says it will continue to focus on serving markets besides the US. On Monday (May 19), an industry-backed regulatory bill known as the Genius Act made its way through the Senate. The House Financial Services Committee has approved its own stablecoin measure, but it has yet to pass the chamber. 'It is important for us to see how the Genius Act is distinguishing between foreign issuers and domestic issuers,' Paolo Ardoino, chief executive officer of Tether Holdings, said on Friday. 'For us, the main interest will remain outside of the US.' El-Salvador-based Tether's USDT stablecoin accounts for more than 60 per cent of the stablecoin market, with 420 million users across emerging markets. The company, which has had several clashes with state and federal authorities over the years, has been increasingly involved in the US amid a friendlier regulatory environment under President Donald Trump's pro-crypto administration. Ardoino made his first visit to the US in March and stopped off in Washington while Trump held his inaugural digital-asset summit. 'We are looking at the Genius Act in a way that will allow us to be compliant,' Ardoino said. 'We can be compliant while still having a strong focus on foreign markets.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The stablecoin bills in the House and Senate require the tokens – usually pegged to the US dollar or another currency – to be fully backed by cash and 'safe assets' such as short-term Treasuries and make issuers subject to the Bank Secrecy Act and to anti-money-laundering regulations. In addition, both bills would allow regulators to sign off on foreign issuers such as Tether if they're subject to 'comparable' rules overseas. However, the question remains on how strictly the law will deal with those that don't comply. 'Stablecoins are surely important in the United States, but it's true that in the United States you have tons of ways to pay each other with Zelle, PayPal, debit cards, credit cards, cash, you name it,' Ardoino said. While Tether does not currently service US customers, most of the private company's reserve is comprised of assets that would be compliant with the proposed US legislation. The firm also backs its token with assets that would not be allowed, such as Bitcoin and secured loans. Because of its size, Tether would be regulated at the federal level if it chose to apply for a US license under such rules. In 2021, Tether settled with US authorities over allegations that it lied about its reserves. Today, those reserves are managed by Cantor Fitzgerald & Co, which was until recently led by Trump's Secretary of Commerce Howard Lutnick. Ardoino has said the company may issue a new stablecoin that will adhere to the requirements, making it more attractive to institutional investors. The more supportive regulatory environment in the US has also pushed Tether to progress towards delivering an audit of its reserves by a Big Four accounting firm, which Ardoino also said that Tether was still in discussions with. Currently, Tether releases quarterly attestations which are signed off by BDO Italia. 'They are going through a phase of adjustment, but a full audit is our priority,' Ardoino said. Stablecoins have become crucial to the functioning of crypto markets, with about US$243 billion of them in circulation in May 2025. On Friday, The Wall Street Journal reported that a consortium of major banks, including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, are exploring whether to jointly issue a stablecoin. 'We are not worried about the competitors coming from big banks, because they will look at the Western world,' Ardoino said. 'Our customer base are the three billion people unbanked that are not touching the banking system.' BLOOMBERG
