Bankless Podcast Summary

Episode: The Stablecoin King | Tether CEO Paolo Ardoino
Guests: Paolo Ardoino (Tether CEO)
Hosts: Ryan Sean Adams & David Hoffman
Date: June 23, 2025

Overview

This Bankless episode is a deep dive into the present and future of stablecoins with Paolo Ardoino, CEO of Tether. The conversation explores the repercussions of the newly passed GENIUS Act (U.S. stablecoin legislation), the state and strategy of Tether (USDT), competition in stablecoins, global adoption, Tether's extraordinary profits, new product launches, the Circle IPO valuation, and ambitious expansionary initiatives from Bitcoin mining, gold tokenization, to massive grassroots distribution strategies. This is perhaps the most comprehensive look at the mechanics and ambitions of the "stablecoin king"—and the scale may surprise you.

Key Discussion Points & Insights

1. GENIUS Act and Stablecoin Regulation

• Newly passed GENIUS Act offers a long-awaited regulatory framework for stablecoins in the U.S.
• Tether welcomes regulation: "We are very honored that the most powerful country in the world is taking good care of a technology that we created 11 years ago." (Paolo Ardoino, 05:52)
• Key requirements: Strong KYC/AML, high reserve and financial standards, and a path for foreign stablecoins (like Tether) to comply via comparable regimes.
• Tether plans both to make USDT Genius Act-compliant and to launch a separate U.S. domestic stablecoin, addressing both global and U.S.-specific use cases.

Notable Quote:
"It creates a strong framework for domestic stablecoins as well as foreign stablecoins like USDT... We think that Tether USDT is in the right spot to comply."
— Paolo Ardoino [05:52]

2. Tether’s Business and Strategic Outlook

• 2024 profit: $13.7 billion, expected to grow in 2025.
  — "Last year we made $13.7 billion in profits, and this year I think we are going to beat that." (Paolo Ardoino, 00:00)
• Tether is the fifth largest purchaser of U.S. treasuries globally, acting as a significant buyer on par with entire nations.
• USDT’s user base is estimated at 440–450 million, with the majority outside the U.S.

Profitability & Valuation Context:

• Hosts note that applying Circle's (USDC) post-IPO price-earnings (PE) multiples to Tether could theoretically value it at over $3 trillion, making it the world’s most valuable company.
  — "You turn Tether into a $13.7 trillion company that’d be the largest company that exists..." (Ryan Sean Adams, 01:19)

3. Dual Stablecoin Strategy

• Tether will both aim to make USDT compliant after GENIUS passes and simultaneously launch a U.S. domestic stablecoin.
• Paolo distinguishes between global and U.S.-focused products:
  • USDT primarily serves unbanked and emerging markets, where stablecoins vastly increase financial efficiency.
  • Domestic U.S. stablecoins will compete on programmability and services, not yield, due to efficient U.S. financial rails and aggressive competition (e.g. large banks, tech).

Notable Quote:
"In the US, stablecoins will become tokenized money market funds… No one will make money in the US."
— Paolo Ardoino [18:49]

4. Distribution—Tether’s Secret Weapon

• Tether’s growth relies on “boots-on-the-ground” education and distribution, not just institutional partnerships.
• Example: In Africa, Tether partners with local vendors and is building solar-powered kiosks (projected: 100,000 kiosks by 2030) to bring digital dollars to millions without electricity.

Notable Quote:
"The reason why Tether is the leading stablecoin and has such high metrics… is because we’ve been building this [boots-on-the-ground] distribution network that is unprecedented."
— Paolo Ardoino [31:54]

5. Tether Ventures & Strategic Investments

• Tether invests outside its stablecoin reserves in diverse verticals:
  • Commodities and Land (e.g., major South American agriculture companies)
  • Artificial Intelligence (building peer-to-peer, device-local AI platforms)
  • Biotech (brain-computer interfaces)
  • Sports (owns Italian football team Juventus)
  • Layer-1 chains focused on scaling stablecoin payments, but Paolo insists there will not be a "Tether chain."
• Every investment is evaluated for its distribution potential and strategic fit with Tether’s mission.

6. Tech & Product Development

• Upcoming Tether-branded wallet (first public announcement, 53:07). Will be multi-chain, open-source, and emphasize lowest fees for users.
• Focus on Wallet Development Kit (WDK) and cross-chain USDT routing for optimal user experience.

7. Relationship with Bitcoin and Gold

• Tether deeply aligns with Bitcoin; holds over 100,000 BTC and is on track to become the world’s largest BTC miner by end of 2025. Mining is seen as protecting the network securing Tether's treasury.
• Only BTC is held as a reserve crypto asset—other chains are avoided to prevent perceptions of favoritism.

Tokenized Gold:

• Tether controls ~80 tons of physical gold (in Switzerland), both backing its treasury and its tokenized gold product (XAUt), which now represents nearly half of all on-chain tokenized gold.
• XAUt tokens are physically redeemable in full-bar increments.

8. Global Regulatory Outlook

• Paolo critiques Europe’s MICA law for requiring too much uninsured bank deposit exposure. Wishes for GENIUS-style standards to become global.
• Predicts most other countries will copy U.S. standards, increasing opportunities for Tether to offer global compliance.

9. Tether’s Value to the US and Crypto

• Tether brings the dollar (and thus US financial and geopolitical influence) to places U.S. banks can’t reach.
• Helps distribute U.S. debt ownership globally, reducing concentration risks.
• Acts as a buffer against BRICS initiatives to undermine the dollar in emerging markets.

Notable Closing Quote:
"We are bringing financial inclusion through the US dollar to hundreds of millions of people... And we are spreading the US Dollar hegemony."
— Paolo Ardoino [73:07]

Memorable Quotes & Timestamps

• "We collaborated with more than 250 law enforcement agencies across more than 55 different countries. There is no financial institution that has these numbers."
  — Paolo Ardoino [07:32]

• "Last year we made 13.7 billion in profits..."
  — Paolo Ardoino [00:00, 14:35]

• "We [Tether] were the fifth largest purchaser of U.S. treasuries."
  — Paolo Ardoino [15:55]

• "Distribution is the thing… we have been building this [distribution] network that is unprecedented…"
  — Paolo Ardoino [31:54]

• "Tether is set to become probably the biggest [bitcoin] miner in the world at the end of this year."
  — Paolo Ardoino [59:15]

• "We keep our money [treasuries] in the United States. That's because I can sleep well at night... They have a direct connection to the Fed."
  — Paolo Ardoino [26:05]

Important Timestamps

| Time | Segment/Topic | |-----------|------------------------------------------------------------| | 00:00 | Tether’s $13.7B profit headline | | 05:52 | GENIUS Act implications; framework for stablecoins | | 14:24 | Tether's compliance plan: dual stablecoin strategy | | 15:55 | Tether’s position as top buyer of US treasuries | | 18:49 | Why launch a US domestic stablecoin as well as USDT | | 31:54 | Distribution as Tether’s key moat, global presence | | 44:53 | Tether Ventures: land, AI, commodities, Juventus FC | | 53:07 | Announcement of new Tether wallet (product scoop) | | 55:52 | Tether’s relationship with Bitcoin | | 59:15 | Tether to become world’s largest BTC miner | | 63:26 | Tokenized gold details and physical redemption | | 67:35 | Analysis of regulatory standards in Europe (MICA critique) | | 73:07 | Paolo’s case for why Tether is good for US & crypto |

Tone, Style, and Flow

The conversation is candid and direct, with Paolo Ardoino often surprising the hosts with Tether’s scale and aspirations. The tone is celebratory but grounded. The hosts quiz Paolo on hard numbers, probing strategic moves, and the regulatory future; Paolo openly shares Tether’s vision, operational philosophy, and even some breaking news. There’s both humility about Tether’s roots and confidence in its global leadership.

For Those Who Haven’t Listened

This episode offers a sweeping—and at times jaw-dropping—look behind the curtain at Tether’s scale, profits, regulatory calculus, global impact, and product innovation. It is essential listening for anyone who wants to understand the present and future of stablecoins, the practical geopolitics of dollar hegemony, and the immense off-chain economic impact crypto companies are already having worldwide. Paolo Ardoino’s strategic clarity and candor make clear why Tether remains the “Stablecoin King.”