In a recent interview with Fox Business, Tether’s CEO Paolo Ardoino confirmed that the USDT stablecoin is backed by 104%.
This indicates that the company holds assets worth significantly more than the total supply of the stablecoin.
Ardoino emphasized to Fox Business that ensuring the stability and security of the stablecoin is the company’s “top priority.”
According to data from CoinGecko, USDT’s market cap is nearing the $120 billion mark.
In 2021, the company faced a $41 million fine from the CFTC for making false claims about its reserves.
Tether publishes quarterly reports to provide transparency about its reserves.
Last year, American financial services firm Cantor Fitzgerald confirmed it was in charge of managing Tether’s Treasury bills. According to Ardoino, Cantor is directly linked to the Federal Reserve, meaning it could make payments through that system under any conditions. The company holds an impressive $97 billion in government bonds.
Earlier this year, Ripple CEO Brad Garlinghouse sparked controversy by suggesting that the U.S. government was targeting Tether. This comment, made shortly after Ripple launched its own stablecoin, didn’t sit well with Ardoino. He criticized Garlinghouse for spreading fear, uncertainty, and doubt (FUD) and emphasized Tether’s ongoing collaboration with law enforcement agencies worldwide.
