Tether CEO Denies Blockchain Plans as Regulatory Concerns Mount

Tether CEO Paolo Ardoino has dismissed rumors of the company creating its own blockchain, asserting that Tether will focus on integrating its stablecoin, USDT, across various networks to support decentralized applications.

This strategy aligns with Tether’s commitment to neutrality, reflected in its motto, “Unstoppable TogETHER.”

As the largest stablecoin with a market cap over $118 billion, USDT controls about 75% of the stablecoin market, facilitating quick trades between fiat and digital currencies. Tether’s recent launch of USDT on The Open Network (TON), quickly reaching a supply of over $1 billion, has intensified speculation about a potential blockchain.

However, Tether faces increasing regulatory scrutiny due to investigations into possible money laundering and sanctions violations, raising concerns about its reserve transparency. Critics have labeled Tether a “scam,” alleging insufficient backing for USDT, with calls for a more transparent governance structure.

In addition, Tether has been accused of using USDT to manipulate cryptocurrency prices. The company refutes these claims as “reckless and false,” asserting that USDT issuance reflects market demand and utility, not manipulation. Tether maintains that each USDT token is backed by reserves, and its growth mirrors genuine market activity rather than coordinated efforts to inflate prices.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.