Tether Prioritizes Markets Outside the US

Tether will continue to focus on markets outside the United States, despite Congress’s consideration of bills to integrate stablecoins into the financial system. This was stated by the company’s CEO, Paolo Ardoino, on Bloomberg TV.

On May 20, the Senate approved the so-called GENIUS Act. The House Financial Services Committee has approved its own bill on stablecoin regulation. The document still needs to pass a general vote.

“It is important for us to understand how the GENIUS Act distinguishes between foreign and domestic issuers. But our main interest will remain outside the US,” noted Ardoino.

Legislators’ requirements for stablecoins include full backing by cash and “safe assets” such as treasury bonds. Issuers are also subject to the Bank Secrecy Act and anti-money laundering regulations.

A large portion of Tether’s reserves complies with the anticipated US standards, but the use of some, including secured loans and Bitcoin, will be prohibited. According to Ardoino, the company is considering ensuring compliance while focusing primarily on foreign markets.

Tether’s USDT capitalization exceeded $150 billion, with the asset dominating the segment with a share of about 60%. The company, with its headquarters in El Salvador, serves 420 million users in developing countries.

“Stablecoins are certainly important in the United States, but the truth is, you have plenty of ways to pay each other using Zelle, PayPal, debit and credit cards, cash, whatever,” explained Ardoino.

According to the WSJ, a consortium of major American banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, is exploring the possibility of jointly issuing a stablecoin. Tether’s head stated he is not concerned about potential competition, as these institutions “will be looking at the Western world.”

“Our customer base is three billion people without accounts and access to the banking system,” emphasized Ardoino.

However, he confirmed that the company may issue a stablecoin that meets US requirements, which would be attractive to institutional investors.

Back in April, “crypto czar” David Sachs estimated that the adoption of the GENIUS Act will increase demand for US treasuries “by trillions of dollars.”