Tether, the issuer of the USDT stablecoin, plans to double its workforce by mid-2025. With its record profits, what does the company behind the cryptocurrency market's most capitalized stablecoin plan to do?
Tether wants to double its employees by 2025
Tether, the American company that issues USDT, the most capitalized stablecoin in the cryptocurrency market, plans to double its workforce.
It was Paolo Ardoino, CEO of Tether since December 2023, who revealed the information to Bloomberg News. More precisely, the firm, whose flagship stablecoin is currently capitalized at almost $115 billion, plans to reach 200 employees by the end of the first half of 2025.
A surprising figure to say the least, especially when you consider other big names in the ecosystem such as Binance or Coinbase that employ thousands of people worldwide. However, in light of the waves of layoffs that have taken place during 2023, this approach may seem strategic.
Indeed, the vagaries of the cryptocurrency market are sometimes difficult to digest for certain companies, especially when they last for a certain period of time.
In his interview with Bloomberg News, Paolo Ardoino also insisted on this point :
There is nothing I hate more than all these companies, especially those in Silicon Valley, that hire hundreds of people during the booms and then fire them when the market turns. I think it is one of the most unfair things you can do to employees.
Tether's CEO, now seen as the face of the company to most investors, stressed that flexibility was a key word. We are very careful when hiring staff, we only hire experienced people, ” he specifies.
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USDT, a real cash machine
Despite its small workforce, Tether remains a high-growth company. It is making colossal profits in this regard, as we recently explained in our columns. Indeed, for the first half of 2024, the company issuing the USDT declared a record net profit of 5.2 billion dollars.
On this subject, Paolo Ardoino had also declared that these profits were mainly explained by Tether's exposure to American Treasury bonds, which constitute the overwhelming majority of the company's reserves.
Despite this, the company is aware that the crypto market of tomorrow will be very dependent on the various regulations applied internationally. The latest example, MiCA, is telling. Partially implemented on a European scale on June 30, this regulation expelled USDT from the local market, making way for Circle's USDC, its biggest rival, on centralized platforms.
Also, to the extent that USDT remains the most used stablecoin in Europe in 2023, Tether could very certainly seek not to be swallowed up by its rivals.
Net stablecoin inflows into the EU in 2023
Tether is not relying entirely on its Treasury bonds and USDT, however.. Last June, Paolo Ardoino had declared that the company had invested no less than 2 billion dollars in the ” alternative financial infrastructures for emerging markets, artificial intelligence and biotechnology “.
Moreover, Tether's CEO added at that time that the company's investment arm – made up of 15 people – would invest a billion dollars over the next 12 months.
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Source: Bloomberg
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