Podcast Episode Summary
Podcast: Everybody's Business
Episode: Big Take: The Crypto Giant Amassing US Debt
Date: April 13, 2026
Hosts: Stacey Vanek Smith (for Sarah Holder and David Gura), with reporting from Todd Gillespie
Guests: Unnamed Crypto Industry Analyst, quotes from Paolo Arduino (CEO of Tether)

Episode Overview

This episode delves deep into Tether, the mammoth yet secretive cryptocurrency company whose core product, the stablecoin USDT, is not only reshaping the crypto landscape but has become a major player in the global debt market—especially US debt. With Tether’s pivotal role in digital transactions, growing regulatory ties, and a business model amassing billions in US Treasuries, the episode examines Tether’s rise, its growing influence in US financial and political systems, the risks and opportunities it presents, and what its continued expansion means for the broader economy.

Key Discussion Points & Insights

1. Tether’s Origin and Business Model

• Tether issues a “stablecoin,” USDT, which is pegged 1:1 to the US dollar but operates outside traditional finance.
• The core idea (libertarian-rooted): offer a digital dollar alternative outside central bank control, immune from inflationary policies.
  • [05:04] Crypto Industry Analyst: "It's pegged. Yeah, exactly. It's tethered. Right. That's the whole point."
• USDT’s stability and instant transferability make it essential for remittances and payments, especially in emerging markets.
  • [06:38] Crypto Industry Analyst: "Tether allows you to do that with minimal fees, essentially. So it basically is a much more efficient way of doing that, of processing payments."

2. Controversies and Criticisms

• USDT has been used for illicit transactions—but Tether claims blockchain transparency allows for easier tracing than cash and states it actively works with authorities.
  • [07:33] Crypto Industry Analyst: “...once you can identify whose wallets are on the other side...it allows you to freeze that actually better than you would from instance with cash..."
  • [08:01] Todd Gillespie (reading Tether statement): “Tether...maintains a zero tolerance policy toward illicit activity.”
• Tether’s reserves have long been opaque.
  • No full audit to date; regulators fined Tether for misrepresenting its reserves and barred the company from New York. ([08:53] Todd Gillespie)
  • Committed to a full audit by the end of 2026.

3. Regulatory Environment and Political Connections

• The second Trump administration ushered in a friendlier era for Tether and stablecoins.
  • Commerce Secretary Howard Lutnick—whose children directly benefited from Tether—holds notable sway ([09:35] Crypto Industry Analyst).
  • Potential conflicts of interest as Lutnick’s assets and Tether’s business overlap.
• Passage of the GENIUS Act established US stablecoin regulations, requiring these tokens to be backed by US Treasuries and thus integrating stablecoins further into the US debt framework.
  • [10:59] Crypto Industry Analyst: “So not just Tether, but also Circle...are basically now given guardrails to issue tokens that are compliant...and also mandate them to back their currencies...with reserves of US Treasuries...because...the more buyers you have for US Treasuries, it allows you to lower the cost of your debt."

4. Tether as a US Debt Giant

• Tether’s holdings in US Treasuries now rival those of nation-states, with $135 billion worth (as of late 2025), making it the 17th largest holder of US debt in the world—larger than most foreign governments.
  • [11:51] Todd Gillespie: “…the only entity in the top 20 that was not a country.”
  • This buildup helps the US government by lowering borrowing costs and strengthening the dollar’s global position.
• However, reliance on stablecoin demand for US debt introduces new risks if there’s a downturn or a run on Tether.
  • [12:36] Crypto Industry Analyst: “If there’s a run on a stablecoin...that leaves your whole economy open to potentially a lot of...danger on a financial level.”

5. Tether’s Profits, Expansion & Diversification

• Tether made $10 billion in profit last year—unprecedented for a company with just 300 employees.
  • [16:23] Todd Gillespie: "Last year, with only 300 people on staff, Tether reported a profit of $10 billion."
• Currently seeking a $500+ billion valuation—on par with world-changing companies like SpaceX and OpenAI.
  • [16:45] Crypto Industry Analyst: "It is now trying to raise money at a 500 billion plus dollar valuation..."
• Diversifying investments into land in South America, commodity trading, and huge gold reserves (70 tons last year, more than nearly any central bank).
  • [17:26] Todd Gillespie: “Last year Tether bought 70 tons of gold. That is more than the reported purchases of almost any central bank.”
• Adopting gold and US Treasuries as hedges while maintaining a sizable Bitcoin position.
  • [17:51] Crypto Industry Analyst: “They are investing heavily in very, very safe assets. But they also see Bitcoin as increasingly a safe asset."

6. Penetrating the US Market: USAT Stablecoin

• Post-GENIUS Act, Tether created USAT—a new, regulation-compliant, dollar-pegged coin for the US market.
  • Backed exclusively by US Treasuries (no gold/Bitcoin allowed for reserve).
  • Focus: Not a hedge against inflation (unlike overseas) but as a payment processor to bypass credit card fees and slow settlements.
  • [20:18] Crypto Industry Analyst: "What they're enabling people to do here...is that you can avoid things like credit card fees if you're a restaurant."
  • [20:33] Crypto Industry Analyst: "You can avoid a 3% credit card fee, for instance...the transaction would be settled immediately."
• Investment in US-facing digital platforms (e.g., Rumble, a conservative video platform) to spread adoption.
  • [21:03] Crypto Industry Analyst: “…looking for digital platforms in the US to invest into…and that allows them to increase their use case, increase their relevance…”

7. Political and Economic Influence

• Tether is increasing its lobbying and political spending in the US, supporting White House initiatives and planning to back political spending groups, leveraging profits and influence. ([21:34] Todd Gillespie)
• Portfolio now includes ~130 companies worldwide, with questions about the impact and reach of this financial power.

8. Systemic Risks and Uncertainties

• Despite expansion, stablecoin adoption has plateaued recently amid broader crypto market volatility.
  • [22:16] Crypto Industry Analyst: "We've seen stablecoin adoption actually plateau a bit recently..."
• Concerns about systemic risk if Tether were to collapse or dramatically shift its US Treasury holdings.
• Much remains unknown about the company's reserve management and future direction.

Notable Quotes & Memorable Moments

• Paolo Arduino, CEO of Tether (on the company’s vision):

  • “Tether is building not just to survive Armageddon, but to thrive in Armageddon.” [03:03]

• Stacey Vanek Smith:

  • “That's like private island money.” [10:06] (on the value of a potential 5% stake in Tether)

• Crypto Industry Analyst:

  • “They have been buying land in South America. They've been supporting commodity trading companies. They've been buying up gold, huge, huge quantities.” [17:17]

• Crypto Industry Analyst (on risks):

  • “If there’s a run on a stablecoin...that leaves your whole economy open to potentially a lot of danger on a financial level.” [12:36]

Timestamps for Important Segments

| Segment Description | Timestamp | |---------------------------------------------------|-----------| | Paolo Arduino pitches Tether's survival thesis | 01:59–03:26 | | Tether’s business model and stablecoin basics | 04:52–06:05 | | Tether’s role in remittances and emerging markets | 06:38–07:17 | | Illicit activity and Tether’s controls | 07:17–08:01 | | Reserve controversies and lack of audit | 08:47–08:53 | | Regulatory shift under second Trump administration | 09:35–10:59 | | GENIUS Act and stablecoins’ impact on US debt | 10:59–12:36 | | Tether’s US Treasury holdings | 11:51–12:20 | | Risks if Tether’s demand decreases | 12:28–13:20 | | Tether profits, expansion, and diversification | 16:23–17:34 | | Tether’s investments in gold and Bitcoin | 17:26–18:23 | | USAT stablecoin and US market focus | 18:39–20:49 | | Tether’s investments in US digital platforms | 21:03–21:34 | | Lobbying and political spending in the US | 21:34–21:55 | | Closing insights and systemic risk concerns | 22:16–23:26 |

Conclusion

The episode paints a picture of Tether as a vastly influential yet somewhat enigmatic player whose near-$200 billion in assets—and newly cemented regulatory acceptance—are driving fundamental shifts in global finance and US public debt markets. While Tether’s products offer efficiencies and alternatives to traditional financial systems, their unorthodox business practices, political ties, and opaque reserves raise urgent questions about systemic risk, regulatory capture, and the unknowns of integrating crypto giants into the very heart of global finance.

For more insight and unlimited access to Bloomberg reporting, visit bloomberg.com/podcastoffer.