Paolo Ardoino (Tether): "We are the most resilient company in the sector".
Published on Mar 29, 2023
Criticised for its lack of transparency, Tether seems stronger than ever with its stablecoin, USDT, worth over $70 billion. The Big Whale spoke to its chief technology officer (who is also CTO of Bitfinex) about this insolent and troubling financial health.
The Big Whale: Tether's crash has been announced 1,000 times, yet you're still here. What does this inspire in you?
Paolo Ardoino: For years, we've been attacked, criticised, some hoping that Tether would crash, but it hasn't. But it hasn't. Why? Because their attacks are unfounded.
We are in contact with the US regulators, many things have been audited. I think we are the most closely watched and also the most resilient company in the sector. 💪
There was some criticism of your reserve. You recently abandoned commercial paper, which are composite corporate bonds (several types of loans bundled together) in favour of US Treasuries, which are supposed to be much stronger. Isn't this a sign that there was a problem?
There have been some untruths about this. Many people said that we had commercial papers without specifying that they were of good quality. We had those with the best ratings.
We then moved into Treasuries because there was demand from our clients for them and it seemed to us to be the right strategy.
Silicon Valley Bank fell in 48 hours despite having its coffers full of US Treasuries...