Tether CEO Claims 650 Million Users Help Distribute US Debt While Tether Holds the T-Bills
(22 days ago) · 1 source · Summarized by CryptoBipto
Tether CEO Paolo Ardoino has stated that 650 million people are effectively helping to decentralize US debt through their use of USDT, which is backed in part by US Treasury bills. However, Tether itself remains the centralized entity that purchases and controls those Treasury holdings.
WHY IT MATTERS
Stablecoins like USDT are digital tokens designed to maintain a steady value, usually pegged to the US dollar. To back that value, the issuing company — in this case, Tether — buys safe assets like US Treasury bills, which are short-term loans to the US government. Think of it like a giant money market fund: millions of people hold the token, but one company decides what to buy with the pooled money and keeps custody of it. Even though many people use USDT around the world, they have to trust Tether to manage the reserves properly. This story highlights the difference between something being widely used and something being truly decentralized, where no single entity is in control.
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