Tether CEO Paolo Ardoino has put an end to speculations regarding the development of a dedicated blockchain for the stablecoin issuer, clarifying that the firm is not moving with the plan at the moment.
“Tether is not planning to build an official blockchain at this time,” he wrote on X. Instead, Ardoino said the stablecoin issuer plans to continue expanding the presence of its USDT stablecoin across multiple networks.
“Simply different independent L2 solutions are working to support $USDt for gas fees,” he added.
I hear again few rumors about a Tether Chain.
Tether is not planning to build an official blockchain at this time.
Simply different independent L2 solutions are working to support $USDt for gas fees.— Paolo Ardoino 🤖🍐 (@paoloardoino) November 3, 2024
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Tether’s Neutrality Is Core To Its Operational Philosophy
Ardoino claimed that Tether’s neutrality within the ecosystem is core to its operational philosophy, aligning with the company’s motto, “Unstoppable TogETHER.”
The approach promotes collaboration over consolidation, emphasizing Tether’s preference to partner with existing blockchain projects rather than establish one of its own.
The rumor of a potential Tether blockchain has been fueled by Tether’s dominance in the stablecoin market and ongoing regulatory attention. However, Ardoino dismissed these notions. He further clarified that any new product announcements from Tether would be delayed to avoid the “election noise” overshadowing the news.
“Gotta push back new product release by 7 days,” he said.
USDT remains the largest stablecoin by market capitalization. It is pegged to the US dollar and holding over $118 billion in value. Tether commands around 75% of the stablecoin market, reinforcing its position as a critical gateway for fiat access within the crypto landscape.
Traders commonly use USDT to seamlessly switch between digital assets and fiat currencies on various exchanges, enhancing liquidity across the crypto sector.
Recent developments, such as the deployment of USDT on The Open Network (TON) where it has reached a supply of over $1 billion, have only heightened speculation about Tether’s next steps.
Regulatory scrutiny, however, has kept Tether in the public eye. Investigations into potential financial improprieties, including alleged involvement in money laundering and sanctions violations, have raised market concerns. This has also intensified calls for transparency.
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Tether Achieves Record Profits In Q3
Meanwhile, Tether achieved record-breaking financial results in the third quarter of 2024, reporting $2.5 billion in profits. This marked the highest quarterly profit in the company’s history and pushed its nine-month profit total to an impressive $7.7 billion.
Tether’s consolidated assets reached $134.4 billion, with $14.2 billion in group equity, as noted in its Q3 attestation conducted by BDO.
The Q3 attestation revealed Tether’s strong reserve position, boasting over $105 billion in cash and cash equivalents, with $102.5 billion in US Treasuries alone.
The substantial holding would position Tether among the world’s top holders of U.S. Treasuries, ahead of economies like Germany and Australia.
Tether has further bolstered its reserve buffer to over $6 billion, while profits from its gold holdings contributed approximately $1.1 billion in unrealized gains.
Tether Investments, the company’s venture arm, made notable strides in strategic sectors, reaching $7.7 billion in investments across industries like renewable energy, AI, and Bitcoin mining, with an additional 7,100 BTC held.
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