Tether Plots Global Expansion

Stablecoin leader seeks to transform itself from crypto plumbing provider into a broad “freedom tech” conglomerate

Tether, the issuer of the world’s largest stablecoin, is embarking on an ambitious global expansion, deploying the vast profits generated by its $185bn USDT token to build what executives describe as a technology group centred on financial sovereignty and decentralisation.

Long regarded as the central liquidity engine of the $2tn crypto market, Tether has historically operated with a lean leadership circle managing the infrastructure that connects digital assets to the US dollar. Now the company is broadening its reach far beyond stablecoins, expanding headcount, building a venture portfolio and deepening political and commercial alliances.

The group, formally registered in El Salvador with operational roots in Switzerland, has amassed roughly 140 investments spanning agriculture in South America, robotics, artificial intelligence and even a stake in Italian football club Juventus.

From stablecoin issuer to conglomerate

USDT, Tether’s dollar-pegged token, has grown from a market value of $5bn in 2020 to about $185bn today. The token is widely used as a settlement asset and trading pair across crypto exchanges, making Tether one of the most profitable entities in digital finance.

Rather than distribute returns to token holders, Tether retains income generated from the reserves backing USDT. The company has accumulated tens of billions of dollars in annual profit, largely driven by yields on US Treasuries and other assets held to support the token’s peg.

That financial firepower has enabled a diversification drive. Chief executive Paolo Ardoino recently outlined the group’s vision at a conference in San Salvador, presenting what he termed a “freedom tech stack” spanning finance, communications, intelligence and energy.

Ardoino argued that peer-to-peer tools are needed to counter what he characterised as over-centralised control by Silicon Valley platforms. The strategy seeks to create alternatives across multiple sectors while embedding USDT into emerging digital ecosystems.

The company has expanded its workforce to roughly 300 employees and plans to add another 150 over the next 18 months, primarily engineers. Recruitment listings show roles for AI specialists in Italy, venture associates in the United Arab Emirates and regulatory leads in Ghana and Brazil.

Governance questions persist

Despite its scale, Tether retains an unconventional internal structure. Employees at recent events wore first-name-only badges, citing privacy. Much of the company’s strategic direction is still shaped by a small group of senior executives.

A new chief financial officer, Simon McWilliams, now oversees finance and operations from London, reflecting an effort to introduce more formal corporate processes. However, transparency remains limited, and teams operate with minimal visibility into one another’s work beyond occasional gatherings in El Salvador or Lugano.

Giancarlo Devasini, the Italian former plastic surgeon who holds a significant stake and has long been regarded as the company’s driving force, maintains a low public profile. He rarely grants interviews and continues to exert influence behind the scenes.

Regulatory scrutiny

Tether’s expansion comes as stablecoins face increasing oversight. In 2021, the company reached a multimillion-dollar settlement with US authorities over allegations it misrepresented the assets backing USDT. It now publishes quarterly attestations from BDO Italia but has not completed a full independent audit.

S&P Global has expressed concerns about the presence of gold, bitcoin and other higher-risk assets within Tether’s reserves, though the company disputes such assessments. In recent years it has increased holdings of US government debt, becoming a significant buyer of Treasuries.

Stablecoins have also drawn attention from law enforcement agencies over their use in sanctioned transactions and illicit finance. Tether maintains that it cooperates voluntarily with US enforcement authorities, though critics argue its obligations differ from those of fully regulated US financial institutions.

Competition is intensifying. Rival issuer Circle, which operates USDC, is headquartered in New York and went public in the United States last year, positioning itself as a more conventional, regulated alternative.

Political alliances

Tether’s strategic positioning reflects its political connections. The company relocated its headquarters to El Salvador, where President Nayib Bukele has embraced cryptocurrency as part of his economic policy. Tether is constructing a new office tower in the country and enjoys close ties with the administration.

In the United States, Tether’s network includes links to figures within the administration of Donald Trump. Cantor Fitzgerald, formerly led by US commerce secretary Howard Lutnick, acts as custodian for Tether’s Treasury holdings and has invested in the company. Brandon Lutnick, now chair of the firm, has described Ardoino as a close partner.

Tether has hired experienced US lobbyists and former government officials to support its expansion into the American market under evolving regulatory frameworks.

Strategic investments

Among Tether’s highest-profile investments is a $775mn stake in Rumble, a right-leaning alternative to YouTube. Rumble’s infrastructure hosts Truth Social, the platform owned by Trump Media & Technology Group, and has integrated crypto tipping tools developed in collaboration with Tether.

The company’s broader portfolio includes ventures in robotics, satellite technology and AI software. At its San Salvador conference, employees showcased bitcoin mining systems, AI agent platforms and digital wallets designed to integrate seamlessly with USDT.

Executives describe these initiatives as complementary pillars in a long-term plan to embed Tether across financial and digital infrastructure.

Balancing ambition and credibility

Tether’s central challenge is to reconcile its decentralisation rhetoric with its pivotal, centralised role in crypto markets. USDT remains the primary bridge between traditional currencies and digital assets, making Tether indispensable but also highly visible to regulators.

Some investors have questioned the valuation targets reportedly associated with potential US fundraising rounds, said to be in the range of $500bn. Others view diversification as a necessary hedge against rising competition in stablecoins.

The group’s leadership frames its expansion in broader ideological terms. Ardoino has repeatedly cited demand from users in countries with unstable currencies, including Venezuela, as evidence of stablecoins’ social utility.

Yet the company’s ambitions extend well beyond payments. One person familiar with its strategy described Tether as aspiring to operate like a “decentralised central bank”, combining reserve management, technology development and capital allocation on a global scale.

For now, Tether’s financial strength affords it unusual latitude. The question facing investors and regulators alike is whether the company can transform its extraordinary profitability into a durable, diversified technology empire while addressing longstanding concerns over governance and transparency.

Its next phase will test whether a business built on crypto-financial plumbing can credibly evolve into a global conglomerate built around its own definition of freedom.