Tether (USDT) Has No Plans to Pursue an IPO, CEO Paolo Ardoino Says

The announcement comes as the company reports $12 billion in profits over the past two years, surpassing earnings of major Wall Street institutions like BlackRock.

Tether (CRYPTO: USDT) has no plans to pursue an initial public offering (IPO), the company’s CEO Paolo Ardoino revealed during an interview at DC Fintech Week.

The announcement comes as the company reports $12 billion in profits over the past two years, an amount that surpasses the earnings of major Wall Street institutions like BlackRock (NYSE:BLK).

What Happened: Speaking to FOX journalist Eleanor Terrett, Ardoino explained that going public could slow down the company’s ability to innovate and “disrupt the status quo.”

He highlighted that companies typically pursue IPOs when they need access to capital and liquidity — resources that Tether currently has in abundance.

“When you have a company that is making $12 billion in two years, I think you have enough capital and liquidity. We don’t need to go public for that,” Ardoino said.

The stablecoin issuer has established itself as a dominant force in the cryptocurrency market. Recent data from CryptoQuant shows that Tether’s USDT accounts for approximately 71% of the U.S. dollar-backed stablecoin market, with a market capitalization of around $120 billion.

This market leadership position has been achieved while maintaining private ownership, a status that Ardoino intends to preserve.

His stance mirrors that of Ripple (CRYPTO: XRP) CEO Brad Garlinghouse, who recently expressed similar views about keeping his company private due to a strong balance sheet.

The company continues to expand its operations beyond its core stablecoin business. Tether has proposed Boron tokenization to Turkey and is exploring opportunities in commodity lending and other financial services, showing its ambition to diversify its revenue streams.

Recently, Tether unveiled a life-sized statue of Bitcoin (CRYPTO: BTC) creator Satoshi Nakamoto in Lugano, Switzerland.

The statue was revealed during the 3rd annual Plan ₿ Forum, an initiative founded by Tether in partnership with the City of Lugano to promote Bitcoin and blockchain technology adoption.

?? JUST IN: A new statue of Satoshi Nakamoto has been unveiled in the city of Lugano, Switzerland. pic.twitter.com/TxAkY42Lal

— Cointelegraph (@Cointelegraph) October 25, 2024

Despite its financial success, Tether faces ongoing scrutiny from regulators and industry observers regarding transparency.

The company’s operations have drawn attention as USDT has been criticized for its alleged use in illicit activities, though the company maintains its commitment to compliance and security.

The regulatory landscape for stablecoins continues to evolve.

While the United States has been slow to implement clear guidelines for stablecoin operators, Europe’s Markets in Crypto-Assets (MiCA) regulation is set to take full effect by the end of this year, potentially affecting Tether’s operations in European markets.

Tether’s position in the market has been strengthened by its widespread availability across global exchanges, making USDT the most accessible stablecoin for traders and investors.

This ubiquity has helped maintain its market dominance despite competition from other stablecoin issuers.

The company’s decision to remain private comes at a time when institutional interest in stablecoins is growing.

Traditional financial institutions are increasingly exploring the potential of digital assets, including stablecoins, for various applications in global payments and settlements.

In his role as CEO, Ardoino has emphasized the importance of maintaining operational flexibility.

The private company structure allows Tether to adapt quickly to market changes and regulatory developments without the additional pressures that come with being a publicly traded company.

The unveiling of the Satoshi Nakamoto statue in Lugano represents more than just a symbolic gesture.

According to Ardoino, it serves as a reminder of Bitcoin’s revolutionary impact and the principle of decentralization that continues to guide many cryptocurrency projects.

During the DC Fintech Week conference at Fannie Mae’s headquarters in Washington, D.C., Ardoino discussed these developments and shared insights about the company’s vision for the future of stablecoins.

His presentation addressed the growing institutional adoption of digital assets and Tether’s role in this evolution.

Tether’s market presence extends beyond simple dollar-pegged tokens.

The company has introduced stablecoins backed by other currencies and continues to explore new use cases for its technology.

The company’s strong financial position, with $12 billion in profits over two years, suggests that its strategy of remaining private while focusing on core business growth has been effective.

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