Tether CEO Proposes Decentralized Ownership of U.S. Debt
- Tether claims to have around 650 million users, suggesting a decentralized approach to U.S. debt ownership.
- As of June, Tether reported $187.751 billion in reserve assets, with $114.961 billion held in U.S. Treasury bills.
- Tether’s terms indicate that users have a personal contractual right to redeem USDT, but the reserves are controlled by Tether International.
- The company has not provided a clear methodology for its user count, which may include multiple wallets controlled by single individuals.
- Redemptions for USDT require verification and come with fees, limiting direct access for many users.
Paolo Ardoino’s assertion about decentralizing U.S. debt through stablecoin users highlights the growing role of stablecoins in financial markets, particularly as Tether holds significant Treasury assets to back its issuance.
While Tether claims extensive user reach, the actual control over Treasury assets remains centralized within the company itself, as evidenced by their reported $114.961 billion in U.S. Treasuries.(Source)
