According to Tether CTO Paolo Ardoino, although Tether is a major purchaser and holder of US treasuries, the world’s biggest stablecoin issuer doesn’t consider itself to be a rival of banks.
Ardoino explains that Tether targets a different market, and therefore, it cannot threaten the stability of traditional banking establishments. This was revealed during an interview on The Wolf Of All Streets podcast.
“We are like 60 and something billion in US treasuries and when I explain our portfolio composition, I also explain that we are not here to try to steal the work from the banks in Europe or in the US.”
According to Ardoino, Tether aims to serve the unbanked population. In Europe and the US, most individuals possess bank accounts due to their strong financial and banking systems; however, this is not the case in other regions.
“There are places in the world where 70% of the people don’t have a bank account because the banking infrastructure is poor. They are forgotten or not interesting to the banking infrastructure. That is where we thrive so in a way, we are not competing with the US and European banking industry.”
He said that Tether is in fact, creating more value for the US dollar.
“We are not stealing jobs, we are not stealing fees from them, but we are also tackling a market that is really important for the US.”
Tether in the news
The world’s biggest stablecoin issuer has recently disclosed its plans to expand into Kava (KAVA), an interoperable layer-1 blockchain.
Tether (USDT) has stated in a press release that its dollar-pegged cryptocurrency will soon be available on the Kava network, which has caused a surge in the value of the decentralized finance (DeFi) platform.
As of writing this, KAVA is being traded at $0.934, which marks a considerable 12.9% increase in the past 24 hours.
Paolo Ardonio, the chief technology officer (CTO) of Tether, commended the network’s security in the press release.
“We’re thrilled to be launching USDT on Kava, offering its strong community access to the world’s first, most stable, most trusted, and most widely used stablecoin. The Kava network is a unique and widely followed blockchain with a robust track record of four years with zero security issues, which is essential to protecting USDT users.”
