Tether CEO Paolo Ardoino Shares Insights on Recent Investments
Tether CEO Paolo Ardoino has revealed the company's latest investments across various sectors, ranging from traditional finance (TradFi) to commodity trading payments. Speaking at the Emergence Conference held in Prague on December 5, Ardoino reported that Tether has recently generated over $13 billion in profits. He emphasized that the company has achieved over $135 billion in market value and possesses more than $6 billion in additional equity.
Ardoino noted that these funds are being used to expand Tether's investment portfolio in stable cryptocurrencies. He mentioned that investments in stablecoins and other assets are made from a different firm's perspective. One of the primary areas of investment is Bitcoin mining. Ardoino and his team expressed a strong interest in Bitcoin mining and a desire to take an active role in this sector to maintain Bitcoin's decentralization.
Ardoino stated that Tether is investing in Bitcoin mining companies, particularly in smaller countries, Central and South America. He believes that Bitcoin should not be dependent on just two or three companies and 90% of the mining capacity, aiming to make Bitcoin safer by adding more power globally. He referred to these investments as a "first step," highlighting that Bitcoin mining is a significant investment area for them.
Another area of Tether's investment includes traditional finance and coin trading. Ardoino mentioned that the company has made some agreements in the traditional finance sector and has taken on the role of a short-term lender in various operations. He also revealed that Tether is researching the use of cross-border payments in commodity trading, expressing his belief that stablecoins could be a "game changer" for commodity trading by simplifying payment processes.
In related news, Circle, the issuer of the stablecoin USDC, announced that it has become the first cryptocurrency to meet the new listing requirements set by the Canadian Securities Administrators (CSA). This development ensures that USDC can continue to be listed on licensed crypto trading platforms in Canada beyond the compliance deadline of December 31, 2024, under the Value Referenced Crypto Asset (VCRA) framework. The VCRA classification is applied to crypto assets that aim to maintain a stable value referenced against fiat currencies or other values.
Circle CEO Jeremy Allaire believes that USDC can enhance cross-border payments and that Canada can offer lower transaction costs, increased consumer protections, reduced payment risks, and greater competition in the payment space by improving individual and institutional payment systems.
This development stands out as part of Circle's global expansion strategy, which is further supported by its subsidiary's compliance with the European Union's Markets in Crypto-Assets (MiCA) regulatory framework in France.