Tether CEO highlights importance of stablecoin competition in fostering regulatory engagement

Ripple’s plan to introduce its own stablecoin has the potential to enhance the credibility of the stablecoin market, according to Tether CEO Paolo Ardoino. In an exclusive 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 for fiat-backed tokens. Ardoino believes that the entrance of Ripple into the stablecoin space in 2024 demonstrates the opportunity for additional players to offer legitimate fiat-backed tokens. He also highlighted the growing significance of stablecoins, which have a market capitalization of over $130 billion and serve various functions in the cryptocurrency industry, including decentralized finance protocols and centralized exchanges. Tether, with a market capitalization of $108 billion, is currently the dominant stablecoin, followed by USD Coin with a market cap of $32 billion. Ardoino attributes the rising adoption of stablecoins to inflation and the devaluation of national currencies in countries like Argentina, Turkey, Venezuela, Vietnam, and Brazil. He also noted that the accessibility of digital wallets allows more people, including the unbanked population, to save and transact in digital currencies. Ardoino further stated that Tether maintains overcollateralization of its USDT stablecoin by 106% and aims to transition to 100% reserves in U.S. Treasury bills, currently holding around $90 billion in Treasury bonds.