“Multiple Universes of Stablecoins? Tether’s CEO Claims to Aim for Over 1 Billion Users, Critics Argue: Exaggerated and Unrealistic”
Stablecoin USDT Issuer Tether CEO Paolo Ardoino Claims Crypto Industry Has Entered “Stablecoin Multiverse”
On March 27, Tether CEO Paolo Ardoino tweeted that the crypto industry has entered a “stablecoin multiverse,” predicting that USDT users will surpass 1 billion. However, this claim was quickly challenged by industry insiders, who sarcastically remarked that issuing stablecoins is not that easy, as regulations are chaotic everywhere.
Ardoino Boldly Declares USDT Will Reach One Billion Users
Ardoino stated that stablecoins have now entered the multiverse era, with a wide variety of types emerging. He mentioned that Tether’s global user base has reached 400 million and predicts it will eventually reach 1 billion.
He described this as a “grassroots adoption revolution” and emphasized that Tether has always been driven from the ground up, unlike traditional finance, which often observes from an ivory tower. He asserted that Tether is more grounded and global.
Ardoino confidently stated that USDT will grow to become a stablecoin with 1 billion users.
AMLBot Founder Challenges: Where Are All These Stablecoins Coming From?
However, Slava Demchuk, CEO of the crypto compliance firm AMLBot, dismissed this claim. Demchuk stated, “It is impossible to have that many stablecoins; that is too exaggerated.”
He pointed out that issuing stablecoins is not that simple, especially with the stricter requirements following the implementation of the European MiCA regulations:
- Must have sufficient capital reserves
- Must have liquidity reserves
- Must establish a sound governance mechanism
He emphasized, “Not every operator has the capability to manage this.”
Disparities in Global Regulation Create Arbitrage Havens
Demchuk also noted that global regulation remains “each to their own.” While the European MiCA regulations are clear, the U.S. market is still in turmoil, leading operators to set up shop in places with looser regulations.
He further emphasized that this makes it harder to protect consumers and gives unscrupulous operators opportunities to exploit.
USDT Delisted in Europe, Market Adoption Shifts to USDC
Meanwhile, USDT has been delisted by Binance, Crypto.com, Kraken, and Coinbase in Europe due to non-compliance with MiCA regulations. Although Tether expressed disappointment over this, competitor Circle’s stablecoin USDC has seen a significant increase in trading volume, indicating a possible shift in market trust.
Data from DUNE shows that since November 2024, USDT usage has significantly shifted to USDC, likely due to the implementation of European MiCA regulations and the large-scale delisting of USDT by European exchanges.
Reports Suggest U.S. Still Investigating Tether for Money Laundering and Sanction Violations
In addition to the delisting issues in Europe, Tether is also facing investigations from the U.S. government regarding third-party use of USDT for illegal activities, including money laundering and facilitating payments for sanctioned countries.
In response, Ardoino retorted last October, “They’re just recycling old news.”
Experts Dispute Ardoino’s Billion User Target
Regarding Ardoino’s target of “1 billion users,” experts believe this is unrealistic: “Unless there is a significant shift in global policies or a massive influx of new users from underdeveloped markets, it is impossible to reach that target within a year or two.”
Stablecoin Multiverse Has Arrived, but Tether Hasn’t Won Yet
Although Ardoino emphasized that stablecoins have entered the “multiverse” and that Tether is leading globally, in reality:
- The European MiCA regulations have caused Tether to lose significant market share.
- Tether still faces investigations from the U.S. government, and brand trust remains challenged.
- Competitor USDC is leveraging compliance advantages to overtake Tether.
Ardoino claims that the age of stablecoin multiverse has arrived.
(Tether was the seventh largest buyer of U.S. government bonds last year; is USDT really too big to fail?)
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