As a seasoned crypto investor with a knack for recognizing potential and a healthy dose of skepticism, I find Tether’s expansion plans both intriguing and concerning. On one hand, their growth strategy seems well thought out, focusing on critical areas like compliance and finance while maintaining a lean structure. On the other hand, the ongoing scrutiny over USDT’s potential misuse in illicit activities is a cause for concern.
Tether Holdings Limited, the organization behind the globally recognized stablecoin USDT, is contemplating an increase in their workforce over the next year. In a recent conversation with Bloomberg, Tether’s CEO, Paolo Ardoino, shared that the company aims to nearly double its staff count by mid-2025, which would result in approximately 200 employees on board.
As someone who has spent years working in the financial sector, I can attest to the importance of a strong focus on compliance and finance in any business expansion. Based on my personal experiences, I believe that Tether’s decision to expand in these areas is a strategic move that will help them solidify their operations and ensure long-term success. By bolstering their capabilities in these critical functions, they will be better equipped to navigate the complex regulatory landscape and make sound financial decisions that protect both themselves and their stakeholders. This approach has proven effective in my own career, and I have no doubt it will serve Tether well in their continued growth.
According to Ardoino, although Tether is expanding, it continues to prioritize a streamlined and adaptable organizational setup. Moreover, the CEO emphasized that his team’s strategic hiring strategy centers around recruiting seasoned professionals who can propel the company forward without causing unnecessary growth in the organization’s size.
Scrutiny Over Misuse of USDT
At the moment, Tether is under review due to allegations that USDT may be involved in illegal activities such as money laundering. A recent report from the United Nations Office on Drugs and Crime (UNODC) pointed out USDT’s contribution to money laundering cases in Southeast Asia, especially given its growing popularity on the Tron blockchain. Furthermore, a report by The Wall Street Journal in April suggested that USDT was being used by Russian arms dealers to circumvent American sanctions.
To address these issues, Tether is working closely with international regulatory bodies to prevent misuse of its stablecoin. Additionally, they have partnered with Chainalysis Inc., a blockchain analysis firm, to scrutinize USDT transactions. This partnership involves sanctions screening and tracking suspicious activities on secondary markets, such as OTC desks for trading.
Tether’s Success
Despite having a relatively modest team, Tether has risen to prominence in the financial realm. The value of its USDT is currently astronomical at around $115 billion, significantly outranking its nearest competitor, USDC from Circle, which stands at $34.5 billion. Over the past year, the market cap of USDT has experienced a staggering growth of over 40%.
The prosperity of the company is clearly seen in its financial reports, as it recorded an impressive $5.2 billion in earnings during the initial half of 2024. It’s also worth mentioning that Tether now ranks as the 18th largest owner of US Treasuries, outstripping even Germany in this regard.
For the past two years, Tether has been utilizing earnings from its Treasury assets to invest around $2 billion in new businesses. Some of these investments include Northern Data and Bitdeer. Recently, Ardoino announced that they aim to maintain this investment pace by directing over $1 billion towards emerging markets within the next year.
Tether intends to grow its team, but Ardoino remains wary of rapid expansion. In his words, “I dislike the practice of hiring large numbers of people during bull markets only to let them go when the market experiences a slump.” For Ardooni, the objective is to establish a workforce that can endure the market’s fluctuations and thrive in both good and challenging times.
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2024-08-09 11:56