In-Depth Analysis of the King of Stablecoins Tether's Investment Layout and Development Strategy

Recently, the U.S. Senate passed the landmark GENIUS stablecoin bill, providing direction for the development of the stablecoin industry. Against this backdrop, Tether CEO Paolo Ardoino participated in an exclusive interview with Bankless, discussing Tether's views on the bill, the company's investment strategy, and future development directions.

1. About the GENIUS stablecoin bill

Paolo stated that Tether, as a pioneer in the stablecoin industry, is encouraged by the advancement of the GENIUS Act. He believes that the Act provides a strong regulatory framework for onshore and offshore stablecoins in the United States, and Tether is prepared to meet the relevant requirements.

Paolo emphasized that Tether is in a favorable position regarding compliance. The company has established partnerships with over 250 law enforcement agencies in 55 countries worldwide and possesses advanced monitoring technology. Tether achieved a profit of 13.7 billion USD last year and holds a significant amount of US Treasury bonds, demonstrating its capability to meet all the requirements of the legislation.

2. The Business Model of Stablecoins

Paolo pointed out that stablecoins have vastly different use cases in the U.S. and emerging markets. In the U.S., stablecoins may evolve into tokenized money market funds, with returns primarily going back to users. In emerging markets, stablecoins can significantly enhance financial efficiency and have greater room for development.

Tether's competitive advantage lies in its extensive distribution network. The company has established strong physical touchpoints in emerging markets such as Asia, Africa, and Latin America through grassroots education and promotion. Paolo revealed that over 60% of the growth in Tether's market capitalization comes from grassroots usage in emerging markets.

3. Tether's Investment Strategy

Tether Ventures' investment portfolio covers multiple sectors, including:

1. Traditional assets: Bitcoin, gold, land, and agricultural companies
2. New Technologies: Artificial Intelligence, Brain-Computer Interface
3. Infrastructure: mobile networks, telecommunications networks, energy startups
4. Media and Entertainment: Video Platforms, Football Clubs

Paolo emphasized that distribution is a key factor in assessing investments. Tether aims to establish a wide distribution network through investment to promote the use and adoption of USDT.

4. Blockchain and Bitcoin

Paolo stated that Tether will not launch a dedicated blockchain but will support a multi-chain ecosystem. The company plans to release a wallet that supports all networks, allowing users to freely choose the most suitable chain based on transaction fees.

Paolo expressed a particular fondness for Bitcoin. He believes that Bitcoin has ultimate inclusivity, capable of functioning normally even in the worst circumstances. As Bitcoin block rewards decrease, Paolo envisions that the Bitcoin main chain will become the settlement layer for second-layer networks like the Lightning Network.

5. Tether's Contributions to the United States and the Cryptocurrency Industry

Paolo emphasized Tether's multifaceted contributions to the United States:

1. Promote global financial inclusion through the US dollar
2. Promote the US dollar in emerging markets to maintain its international status.
3. As an important buyer of U.S. Treasury bonds
4. Reinvest the profits into American companies

For the cryptocurrency industry, Paolo believes that Tether's stability and transparency provide a solid foundation for the market, driving the development of the entire industry.