Paolo Ardoino says 650 million people decentralized US debt, but Tether still controls the T-bills

What happened

Tether issues USDT, a digital dollar token, and its CEO Paolo Ardoino says 650 million people use it to hold dollar claims. However, Tether itself still owns and controls the U.S. Treasury bills, or T-bills, that back the token.

Confirmed

Global impact / market context

This means everyday users get dollar exposure without directly owning U.S. debt, while Tether keeps the profit from interest on T-bills. That profit per sale could grow as U.S. borrowing increases, benefiting Tether but concentrating risk in one company.

Analyst inference

Tether's control over T-bills links its cash available to U.S. government funding needs. If Tether faces redemption pressure, it might sell T-bills quickly, potentially affecting Treasury prices. Investors should watch how this private company's decisions influence public debt markets.

Analyst inference

What to watch

1. Watch for any official statements from Tether or Paolo Ardoino about changes in reserve ownership or portfolio control, since the article confirms Tether retains both despite widespread token usage. Confirmed
2. Consider monitoring Tether's quarterly reserve reports to see if it shifts T-bill holdings or gains above face value, which would signal changes in its profit and risk profile. Proposed
3. Watch for regulatory actions targeting stablecoin issuers, as tighter rules could force Tether to alter its T-bill strategy, impacting Treasury demand and the broader digital dollar market. Analyst inference

Affected assets

• USDT — Tether

Evidence

• cryptoslate.com