Tether CEO: stablecoins make US debt safer

Tether CEO Paolo Ardoino argues that stablecoin technology makes US Treasury bonds safer than the traditional financial system could ever achieve. According to Ardoino, the main advantage lies in the decentralised ownership of US debt.

USDT is available at OKX and Bybit.

In brief:

• Tether CEO states that stablecoins have decentralised US debt
• According to him, stablecoins reduce the risks of concentrated foreign ownership
• 650 million people hold US bonds via USDT, says Ardoino

Risks of concentrated debt ownership

Ardoino warns of the dangers of large, concentrated foreign holdings of US Treasury bonds. When one country or entity holds a massive amount of US debt, this can pose a significant risk, he argues.

“Ownership of US Treasury bonds by an antagonistic country is not good for the United States, because you have a single decision-maker who can press a button and sell hundreds of billions of dollars in US Treasuries in one day,” said the Tether chief. “I find that very frightening.”

Decentralised ownership via USDT

According to Ardoino, Tether has created a solution with its stablecoin technology that substantially reduces this risk. Thanks to the decentralised structure of stablecoins, a massive number of users worldwide hold US debt rather than a few large foreign players.

“What Tether created with stablecoins is the first time that US debt was owned in a decentralised way. We created decentralised ownership of US debt, with 650 million people holding US Treasury bonds today, and they will not all wake up on the same morning and decide to sell that debt,” he says.

Innovation that traditional finance never achieved

Ardoino claims that traditional financial institutions, in decades of innovation, never arrived at the same solution. “All those decades of so-called financial innovation by the classic guys in traditional finance, they could never come up with this solution that actually makes US debt safer for the United States itself as the issuer,” he says.

Ardoino’s position adds a new perspective to the debate around stablecoins. While some view stablecoins as a threat to the banking system, the Tether chief presents them instead as a public-interest instrument that increases national security.

Tether remains stable at a value of $1.00.