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Tether’s Ambitious Workforce Growth
Tether, the issuer of the USDT stablecoin, has announced plans to significantly increase its workforce in the coming year, aiming to enhance its compliance and operational capabilities. By the middle of 2025, Tether expects to expand its team to around 200 employees, as shared by CEO Paolo Ardoino.
Enhancing Financial Operations
The company is particularly focused on bolstering its finance department, which is responsible for managing the substantial $118 billion in assets that back the USDT stablecoin.
Impressive Growth with a Lean Team
Despite having a relatively small workforce, Tether has evolved into a formidable player in the financial sector, reporting a net operating profit of $1.3 billion in the second quarter of 2024, largely attributed to its leading stablecoin. In contrast, larger cryptocurrency exchanges such as Binance and Coinbase maintain significantly larger teams.
CEO’s Perspective on Workforce Strategy
During an interview with Bloomberg on August 8th, Ardoino expressed pride in Tether’s lean operational model, stating, “We are very proud of the fact that we are very lean and we want to remain lean because we want to be flexible. We are very careful when we hire people; we hire only senior people.”
Investment Strategies and Cautious Growth
In recent years, Tether has made strategic investments in firms like Northern Data Group and the publicly traded miner Bitdeer Technologies Group, with an intention to continue this trend. Notably, a report from June revealed that only 15 individuals are responsible for managing these investment activities. Ardoino, however, emphasized the importance of cautious growth, expressing his disdain for companies that rapidly expand their workforce during market upswings, only to lay off employees during downturns.
Addressing Concerns Over USDT Usage
Ardoino acknowledged the need for enhanced monitoring tools to detect potential illicit activities involving USDT in the secondary market, including trading on exchanges and over-the-counter (OTC) desks. While Tether engages in direct transactions in the primary market, it has faced scrutiny regarding the misuse of USDT. An April report by the Wall Street Journal highlighted its alleged use by Russian arms traffickers to bypass U.S. sanctions.
Commitment to Compliance
Despite these challenges, Tether remains committed to collaborating with global authorities to mitigate illegal use of USDT. In May, the company partnered with blockchain analytics firm Chainalysis to improve transaction monitoring on secondary markets involving its tokens. This surveillance system aims to ensure adherence to international sanctions and identify illicit transfers, including potential financing of terrorism, thereby helping Tether to pinpoint risky or unlawful cryptocurrency wallets.
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