The Ambition and Strategy of the Stablecoin King: A Deep Dive into the Vision of Tether's CEO

Tether CEO Paolo Ardoino, as a leading figure in the stablecoin world, is humble and low-profile, yet has ambitious plans for Tether's continued development and market dominance. With the milestone stablecoin bill in the United States about to be signed, Paolo shared his insights on the next battleground for the stablecoin industry.

1. About the Genius stablecoin bill

Paolo stated that the Tether team is honored and encouraged by the United States' increasing attention and legislative efforts to regulate stablecoin technology. The Genius Act is an important step in the right direction, building a strong framework for onshore stablecoins and offshore stablecoins like USDT.

Paolo believes that Tether is in a favorable position regarding compliance. He emphasizes Tether's collaboration with over 250 law enforcement agencies worldwide, as well as its own built monitoring technology. He believes that once the United States passes the Genius Act, other countries will follow suit, paving the way for the development of the global stablecoin industry.

Paolo is confident in meeting the requirements of the bill. He pointed out that Tether achieved a profit of $13.7 billion last year, holds a large amount of US Treasury bonds, and is the fifth largest purchaser of US Treasury bonds. Tether's funds are stored in top US financial institutions, employing transparent financial operations that align with the spirit of the bill.

2. Stablecoin Business Models

Paolo believes that stablecoins have drastically different use cases in the United States and other parts of the world. The U.S. is one of the markets with the highest efficiency in capital flow globally, and introducing stablecoins can increase efficiency from 90% to 95%, with limited premium space. In other regions, stablecoins can improve financial efficiency by 30%-40%, which is of greater significance.

There are still 3 billion people globally without bank accounts, while Tether has covered 450 million users, presenting a huge opportunity. Paolo emphasized the importance of distinguishing between different products and application scenarios, highlighting Tether's unique advantages in foreign markets.

3. How to Win the Next Phase of Stablecoin

Paolo introduced Tether's innovative distribution channels, including building solar-powered kiosks in Africa. He emphasized that Tether is not only technologically advanced but has also established an unprecedented dollar distribution network globally.

More than 60% of Tether's market value comes from grassroots usage in emerging markets. Paolo predicts that the next growth driver may come from commodity trading. He also mentioned that stores in places like Bolivia have started marking prices with USDT, showing its natural growth in emerging markets.

Four, Tether Ventures Investment Logic

Tether's investment portfolio is very diverse, including traditional assets such as BTC and gold, as well as fields like land, agriculture, and new technologies. Paolo emphasized that distribution is a key factor in evaluating investments.

He envisions scenarios in the future where AI agents might require non-custodial wallets, as well as the potential for smart devices to integrate with stablecoins. Tether is developing an open-source Wallet Development Kit(WDK), designed to enable anyone to build a complete non-custodial wallet.

5. About Blockchain, Wallets, and BTC

Paolo does not believe there will be a "Tether chain", but is optimistic about the opportunities of certain blockchain projects. Tether plans to launch a wallet that supports all networks, allowing users to freely choose the most suitable chain.

Paolo expressed a particular fondness for BTC. He believes that BTC has ultimate inclusivity, functioning normally even in the worst situations. He envisions the BTC main chain becoming the settlement layer for lightning network-style channels or the underlying layer for some important contracts.

6. Benefits of Tether for the U.S. and Cryptocurrency

Paolo listed many benefits of Tether for the United States:

1. Bring financial inclusion to hundreds of millions through the US dollar
2. Promote the US dollar globally to resist attempts by other countries to replace its status.
3. As one of the major purchasers of U.S. Treasury bonds
4. Reinvest most of the profits in the United States

For the cryptocurrency industry, Paolo emphasized that Tether's stability and transparency provide a solid foundation for the market, driving the development of the entire industry.