Tether, the issuer of the USDT stablecoin, has announced its intention to double its current workforce within the next year. This move is aimed at strengthening various areas within the company, particularly compliance. By mid-2025, Tether plans to have around 200 employees, according to Chief Executive Officer Paolo Ardoino. This expansion includes a focus on increasing staffing in the finance department, which manages the $118 billion in assets backing USDT. Despite its impressive financial success, with a net operating profit of $1.3 billion in the second quarter of 2024, Tether’s team remains relatively small compared to other financial institutions in the crypto space.
Staying Lean and Flexible
In an interview with Bloomberg, Ardoino emphasized Tether’s commitment to remaining lean and flexible. He mentioned that the company is cautious when it comes to hiring new employees, preferring to bring in senior professionals. This strategic approach allows Tether to maintain agility in a rapidly evolving market. While Tether has made investments in companies like Northern Data Group and Bitdeer Technologies Group, Ardoino expressed concerns about rapid workforce expansion. He highlighted the potential negative impact of hiring employees during bullish market trends only to lay them off during downturns, a common practice in some tech companies.
One of Tether’s key priorities is monitoring and preventing illicit activity involving USDT on the secondary market. This includes tracking trading activities on exchanges and over-the-counter (OTC) desks. Tether recognizes the importance of utilizing automated tools to detect and deter illicit use of its stablecoin. The company has faced scrutiny in the past over allegations of USDT being used for illicit purposes, such as evading sanctions by Russian arms smugglers. In response, Tether has collaborated with blockchain surveillance firm Chainalysis to bolster its transaction monitoring capabilities. This partnership aims to ensure compliance with international regulations and identify potential risks associated with crypto transactions.
As Tether continues to navigate the complex regulatory landscape of the crypto industry, its commitment to responsible growth and compliance is evident. By strategically expanding its workforce and investing in advanced monitoring tools, Tether aims to strengthen its position as a leading stablecoin issuer. The company’s emphasis on maintaining a lean yet effective team underscores its dedication to adaptability and sustainability in a dynamic market environment. Amidst growing competition and regulatory scrutiny, Tether remains focused on upholding the integrity of its operations and fostering compliance with global standards.
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