Bitcoin is set to further integrate into TradFi as interest in Bitcoin-based ETFs grows among institutions and corporations, according to Tether CEO Paolo Ardoino, reports The Block.
The executive estimates an increasing number of managers are willing to allocate up to 5% of their assets to digital gold.
He predicted that following the attainment of “legitimacy”, the leading cryptocurrency will attract other corporations, beyond Tesla and MicroStrategy, as a reserve asset. Political uncertainty could serve as a catalyst, he added.
The Tether CEO suggested that regulatory bodies might need to expedite the adoption of digital asset regulations and consider the experience of El Salvador, which has legalized Bitcoin.
“It’s exactly like the story with ETFs based on the first cryptocurrency. Initially, they mocked anyone who even mentioned the possibility of such an instrument. Ultimately, when it became a reality, suddenly everyone wanted to join the Bitcoin movement and launch a product,” Ardoino noted.
In the United States, the Stablecoin Transparency Act is under consideration.
Previously, the head of Tether accused JPMorgan of hypocrisy in response to the bank’s analysts’ statements about the negative impact of USDT’s growing dominance on the crypto ecosystem as a whole.