Tether is not planning to build a blockchain, says CEO Paolo Ardoino

Source Cryptopolitan

Tether CEO Paolo Ardoino shut down rumors of a Tether blockchain, declaring, “Tether is not planning to build an official blockchain at this time.”

Instead, Tether backs the integration of its stablecoin, USDT, on various networks to support decentralized use cases, like gas fees, on independent Layer 2 (L2) solutions.

Tether’s stance on neutrality guides this decision, with its motto, “Unstoppable TogETHER,” signaling a preference for working with other projects instead of consolidating control.

The rumor mill around a potential Tether chain is fed by the company’s dominance and ongoing attention from regulators. But Ardoino added that:

“Any product / announcement done this coming week would end up likely obliterated by the election noise. Gotta push back new product release by 7 days.”

Tether’s market dominance and scrutiny

USDT is the largest stablecoin by market cap, pegged to the US dollar and valued at over $118 billion as of press time. It controls roughly 75% of the stablecoin market, cementing its role as the primary fiat gateway in the crypto ecosystem.

USDT lets traders move in and out of crypto quickly on various exchanges, creating a bridge between digital assets and fiat money.

Tether’s expansion into different networks fueled the blockchain rumors. Recently, Tether launched USDT on The Open Network (TON), pushing its supply on TON to over $1 billion shortly after.

Regulatory scrutiny has kept Tether in the spotlight, with investigations probing potential involvement in money laundering and sanctions violations. These probes are causing waves in the market. Tether’s reserve backing and transparency have come under fire.

USDT itself briefly dipped below its dollar peg when news of the investigations broke, a reaction that underscores market sensitivity to anything tied to Tether.

Tether’s transparency issues aren’t new, either. Its last full audit happened back in 2021, leaving investors wary of its financial health. Critics like Justin Bons, founder of Cyber Capital, call Tether a “scam,” accusing it of lacking sufficient reserve backing and comparing it to “printing counterfeit money.”

Market chatter around Tether’s governance—whether it would benefit from a more transparent structure, like its own chain—has grown louder. But Tether sticks to its “no blockchain” stance, regardless of external pressure.

Ripple’s CEO went as far as predicting a “Black Swan event” tied to Tether’s regulatory troubles, hinting at potential fallout if Tether doesn’t address transparency issues.

Amid these speculations, industry voices question if a Tether blockchain could address compliance and make Tether’s operations less opaque. But so far, Tether refuses to entertain the idea.

Response to manipulation accusations

Tether has faced waves of accusations that USDT is used to manipulate crypto prices, particularly Bitcoin. The company has responded to these claims by calling them “reckless and false.”

According to Tether, the idea that USDT is issued to inflate prices reveals a lack of understanding about the stablecoin’s role in the market. Tether’s general counsel argues that such allegations fail to grasp the basic dynamics of how USDT interacts with crypto markets.

Academic studies fuel some of this criticism, with one high-profile paper by John M. Griffin and Amin Shams suggesting that Tether’s issuances drive Bitcoin prices. Tether fired back, calling the study “fundamentally flawed.”

The company claims the authors relied on limited and cherry-picked data, lacking accurate transaction details and exchange flows, which skewed their conclusions. Tether argues that the patterns could just as easily represent legitimate purchases as unbacked issuances.

Tether maintains that every USDT token is fully backed by reserves, issued based on market demand rather than for price manipulation. They emphasize that USDT’s issuance reflects utility and acceptance across exchanges, not attempts to meddle with prices.

In legal battles, Tether and Bitfinex, its affiliated exchange, argue that the accusations against them lack evidence. Plaintiffs alleging coordinated price inflation through USDT haven’t shown enough proof, according to Tether’s legal team.

Tether insists that USDT’s growth and issuance levels mirror its utility and demand in the market—not any behind-the-scenes manipulation.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Big Tech's $800 billion AI bill faces its first real test — free cash flow is the judgeAlphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
Author  Irene Q.
Oct 26, Mon
Alphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
placeholder
Anthropic files for a $2 trillion IPO — the $80.7 billion loss is the decoy, the $450 billion compute bill is the riskAnthropic publicly filed its S-1 on October 26, revealing $16.29 billion of first-half revenue (+1,304% year over year) and a $80.7 billion net loss — of which $72.4 billion is a non-cash convertible-note charge. The real number is the $450 billion of signed, mostly non-cancelable compute commitments. Here is what the filing says, why NVDA, ARM and MU are the tradeable read-through, and the conditions that decide whether the AI trade passes its first public valuation test.
Author  Irene Q.
Oct 27, Tue
Anthropic publicly filed its S-1 on October 26, revealing $16.29 billion of first-half revenue (+1,304% year over year) and a $80.7 billion net loss — of which $72.4 billion is a non-cash convertible-note charge. The real number is the $450 billion of signed, mostly non-cancelable compute commitments. Here is what the filing says, why NVDA, ARM and MU are the tradeable read-through, and the conditions that decide whether the AI trade passes its first public valuation test.
placeholder
Fed October Rate Decision Preview: Rate Hike Pause Has Become Consensus, How Will US Stocks, Dollar, and Gold React?The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide
Author  TradingKey
Oct 27, Tue
The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide
placeholder
Bitcoin is back above $80,000 — but 75% of the bounce was shorts, not buyersBitcoin trades at $80,669, back above the $80,000 line after touching $79,145 on October 24. But 75.4% of the last 24 hours of futures liquidations were shorts, CME open interest fell 36,545 BTC in October, and spot ETFs lost $773.5 million on October 22-23. Price is up; positioning is down. Here is why the bounce is a squeeze, and the four things that would make it real.
Author  Suzie
Yesterday 05: 54
Bitcoin trades at $80,669, back above the $80,000 line after touching $79,145 on October 24. But 75.4% of the last 24 hours of futures liquidations were shorts, CME open interest fell 36,545 BTC in October, and spot ETFs lost $773.5 million on October 22-23. Price is up; positioning is down. Here is why the bounce is a squeeze, and the four things that would make it real.
placeholder
Brent's $115 front month sits $4.6 above January — the $14 spread to WTI is the supply-risk premiumDecember Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.
Author  Irene Q.
Yesterday 06: 21
December Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.
goTop
quote