Tether CEO fires back at accusations about company solvency

Tether CEO Paolo Ardoino answered questions from Deutsche Bank analysts about the company’s solvency and the stability of its USDT stablecoin.

Ardoino cited The latest statement by Deutsche Bank analysts regarding account X suggests that the financial institution has no room to talk.

Tether’s CEO highlighted Deutsche Bank’s history of fines and sanctions, raising doubts about his ability to criticize others in the industry. Ardoino reminded that the International Monetary Fund also named Deutsche Bank as the riskiest bank in the world.

“Deutsche Bank’s history of fines and penalties raises questions about its stance on criticizing other companies in the industry.”

Paolo Ardoino, Tether CEO

In the comments on the post, users noted that Deutsche Bank has paid out more than $20 billion for 99 breaches since 2000. Therefore, the bank should not criticize other companies for risks, product structuring or regulations.

Since 2000, Deutsche Bank has paid $20,011,467,563 for 99 violations. This is something only they accept and the public knows. Below are the top 5 offensive areas. They really shouldn’t be talking about risk, product structuring or regulation. pic.twitter.com/Fc0Ybc8VML

— Gabor Gurbacs (@gaborgurbacs) May 10, 2024

Previously, the Deutsche Bank expert group published the results of a study on the stablecoin market. Analysts have identified the asset class’s weaknesses and noted Tether’s lack of transparency as the issuer of the USDT stablecoin.

Deutsch Bank analysts also added that given Tether’s monopoly on the stablecoin market, the consequences would be more serious if USDT crashed.

According to DefiLlama, the total capitalization of stablecoins currently exceeds $160 billion. USDT is the undisputed leader of this market with over 69% market dominance.

Source: DefiLlama

However, experts warn that Tether’s dominance may weaken due to new regulations proposed in the USA.