Tether CEO highlights importance of regulatory engagement in stablecoin competition

Ripple’s plan to launch its own stablecoin could bring more legitimacy to the stablecoin market, according to Paolo Ardoino, the CEO of Tether. In an interview with Cointelegraph during Paris Blockchain Week, Ardoino emphasized the importance of healthy competition among major players in the stablecoin ecosystem to gain recognition from regulators. He believes that having multiple credible players offering fiat-backed tokens demonstrates the growing significance of the sector. Ardoino also expressed his belief that there is room for more players in the market, especially considering the substantial amount of money being printed by the United States. Tether, valued at $108 billion, is currently the leading stablecoin, followed by USD Coin at $32 billion. Ardoino attributes the increasing adoption of stablecoins to inflation and devaluation of national currencies in various countries. He also highlights the accessibility of digital wallets, enabling people to save in digital currencies like USDT or USDC. Ardoino asserts that USDT is overcollateralized by 106% and plans to transition to 100% reserves in US Treasury bills, with an estimated $90 billion in Treasury bonds.