Cryptocurrencies

Tether CTO Ardoino to Become CEO Amid Regulatory Scrutiny

Paolo Ardoino, currently the Chief Technology Officer (CTO) of Holdings Ltd, is poised to take over as Chief Executive Officer (CEO) from Jean-Louis van der Velde this December. Ardoino has been serving as the informal spokesperson for the company and is preparing to lead the issuer of the $84 billion stablecoin, USDT, amid increasing regulatory scrutiny regarding transparency issues.

Headquartered in the British Virgin Islands, Tether paid over $40 million in 2021 to resolve allegations concerning its collateral assets. As of May, the company employed about 60 people dedicated to overseeing USDT, with plans to grow that number to 90 by the end of 2023. Tether’s asset portfolio mainly consists of short-dated US Treasury bills, and it collaborates with various banking partners.

In his upcoming role, Ardoino aims to release real-time data on Tether’s reserves and enhance investments in technology, regulatory communication, and renewable energy initiatives. He will also maintain his responsibilities as CTO at Bitfinex, Tether’s associated cryptocurrency exchange, focusing on its matching engine. Giancarlo Devasini holds the position of CFO for both enterprises.

Tether is expected to face regulatory challenges as authorities are set to implement stricter rules for stablecoin issuers. New regulations from the European Union (EU), which will become effective in June 2024, will require operators to reveal their corporate governance plans, ownership structures, and risk management strategies.

Industry consultant Austin Campbell has emphasized the pressure on Ardoino to provide a complete financial audit of Tether’s accounts, noting potential complications arising from US legislation regarding stablecoins.

Based in Lugano, Switzerland, Ardoino is preparing for these regulatory challenges and is also getting ready for Tether’s annual Bitcoin-themed conference and summer school in the city.

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