Paolo Ardoino, the current Chief Technology Officer (CTO) of Tether Holdings Ltd, is set to take over as Chief Executive Officer (CEO) from Jean-Louis van der Velde this coming December. Ardoino, who has been serving as the unofficial spokesperson for the company, is preparing to lead the firm that issues the $84 billion stablecoin, USDT, amidst growing regulatory scrutiny over transparency issues.
Tether, which is based in the British Virgin Islands, paid over $40 million in 2021 to settle allegations related to its collateral pile. The company had around 60 employees overseeing USDT as of May and plans to expand its team to 90 by the end of 2023. Its assets are primarily composed of short-dated US Treasury bills, and it works with banking partners such as Cantor Fitzgerald, Deltec Bank & Trust Ltd., Britannia Bank & Trust, and Capital Union Bank.
In his new role, Ardoino plans to publish real-time data on Tether's reserves and expand tech investments, regulatory liaisons, and renewable energy ventures. He will also continue his work as CTO at Bitfinex, Tether's sister cryptocurrency exchange, where he will focus on its matching engine. Giancarlo Devasini serves as CFO for both companies.
Regulatory challenges are on the horizon for Tether as authorities plan stricter rules on stablecoin issuers. Regulations from the European Union (EU), set to come into effect in June 2024, will require operators to disclose their corporate governance plans, shareholders, and risk management practices.
Industry consultant Austin Campbell highlighted the pressure on Ardoino to deliver a full financial audit of Tether's books in 2022. Campbell also pointed out potential difficulties arising from US legislation on stablecoins.
Ardoino, who is based in Lugano, Switzerland, is preparing for these challenges and is also gearing up for Tether's annual Bitcoin-themed conference and summer school in the city.
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