Tether, the world’s largest stablecoin by market capitalization, has found significant utility beyond traditional cryptocurrency trading, according to its CEO, Paolo Ardoino. In an interview with Bullish CEO Tom Farley, Ardoino emphasized that USDT has become a crucial digital dollar in countries facing economic instability and high inflation rates.
“USDT Offers a Stable Option in High Inflation Regions”
While USDT initially served as a bridge between fiat currency and cryptocurrencies, its applications have evolved to address real-world challenges. In regions like Argentina and Turkey, where local currencies have experienced volatility, USDT has offered a stable alternative for storing and transferring value.
“USDT works much better outside of the U.S.,” Ardoino stated. “In the U.S., there are numerous options for transferring dollars. But in countries with limited financial infrastructure, USDT provides a reliable and accessible solution.”
This global appeal has contributed to USDT’s dominance in the stablecoin market. With a market capitalization of nearly $120 billion, it surpasses other major cryptocurrencies like Ethereum and ranks third overall.
To accommodate growing demand, Tether has expanded its operations across various blockchains. A significant portion of USDT is issued on Tron, offering lower transaction fees compared to Ethereum. This accessibility has made USDT more attractive to users in regions with limited financial resources.
Beyond its role as a digital currency, USDT has also become a strategic asset for geopolitical considerations. Tether has invested heavily in U.S. Treasury bills, providing a stable backing for the stablecoin and generating interest income. This strategy has positioned Tether as a significant holder of U.S. government debt, offering a counterbalance to potential economic disruptions.
Ardoino concluded by highlighting USDT’s positive impact on the U.S. dollar. By diversifying the ownership of U.S. Treasury bills, Tether has reduced the risk associated with a single country’s decisions. “USDT and Tether are the best friends for the U.S. dollar,” he asserted.
