Tether, the world’s biggest stablecoin issuer, is reportedly planning a return to the US market with a brand-new dollar-pegged cryptocurrency. This move comes as the company, currently based in El Salvador, aims to improve its image and cooperation with law enforcement.
A New Image and a New Coin
Tether CEO Paolo Ardoino confirmed the news to CNBC, stating that the new stablecoin is expected to launch by the end of the year. Ardoino emphasized Tether’s efforts to shed its past reputation as a favored currency for illegal activities. He highlighted the company’s extensive collaboration with law enforcement, claiming it surpasses that of many traditional financial institutions. Ardoino even suggested Tether’s involvement in shaping legislation, specifically mentioning the GENIUS Act, a bill designed to provide clearer guidelines for stablecoins.
Addressing Past Controversies and Transparency
Ardoino also addressed past controversies surrounding Tether’s reserves. The company previously paid $18.5 million to New York in a settlement related to allegations of misrepresenting its reserves. He now boasts that Tether holds approximately $120 billion in US Treasuries, managed by Cantor Fitzgerald, and an additional $7 billion in excess equity. He presented this financial strength as a significant step toward greater transparency and stability. Tether now regularly publishes attestation statements to support these claims.
The Road Ahead
Tether’s planned re-entry into the US market with a new stablecoin represents a significant move for the company. Their focus on transparency and cooperation with authorities suggests a concerted effort to regain trust and legitimacy within the US regulatory landscape. The success of this strategy remains to be seen.